Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Kiwi Insurance Ill-Conceived Back to the Future Policy

November 2, 2013

Kiwi Insurance Ill-Conceived Back to the Future Policy

Creating a State-owned insurance company is an ill-conceived back to the future policy, says the Insurance Council of New Zealand (ICNZ).

The Labour Party today announced that if elected to Government in 2014 it would establish KiwiAssure offering home, contents and vehicle insurance, along with cover for small business plant and equipment.

“This is the second political party to hold its annual conference in Christchurch in recent weeks attempting to grab low-hanging political fruit by ignoring the scale of events in the city and blaming ‘foreign-owned’ companies for the pace of recovery efforts to justify establishing a State-owned insurer,” says Insurance Council Chief Executive Tim Grafton.

“Insurers believe recovery efforts in Christchurch are progressing well given the enormity of the task and the unique situation in New Zealand that requires the State-owned earthquake insurer EQC to deal with claims before transferring over cap claims to the private insurance industry,” says Mr Grafton.  “The fact is, the vast majority of claims are already being managed by the State-owned insurer EQC and State-owned claims manager Southern Response.”

“New Zealand already has a responsive, innovative and responsible private insurance industry and to suggest that further State ownership is the answer, begs me to ask what on earth is the question?” says Mr Grafton.

“Insurance is footing almost $20 billion, or 10% of New Zealand’s GDP, for the Christchurch recovery.  Given its size, New Zealand is one of the most vulnerable countries in the world to natural disasters, so maintaining an appealing, competitive insurance market is essential.  Establishing a State-owned insurer and slamming foreign-owned insurers sends a very negative signal to those who provide the investment capital to support insurance activities in this country that there will be no level playing-field.

“Following the Canterbury earthquakes, the last thing anyone should be doing is trying to drive away insurance capital,” says Mr Grafton.

“Further, it only adds exposure to taxpayers who face more risks if a State-owned insurer ends up manipulating premiums for political purposes ignoring the whole purpose of insurance which is to price risk,” he says. “It makes absolutely no sense to have three State-owned insurers - EQC, ACC and now KiwiAssure.”

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Compensating Afghan Civilian Casualties

Reportedly, there have been nine incidents resulting in 17 civilian deaths and injuries (seven of the dead were children) caused by ordnance left behind on what used to be the firing range of our Provincial Reconstruction Team (PRT) in Bamiyan province.

Given that the NZ Defence Force has needed to be hauled kicking and screaming into belatedly arranging an adequate clean-up of its old firing range… what would it take before New Zealand offers to pay compensation to the families of those who suffered death and injury from what was left behind on our watch? More>>

 

Fossil Fuel Investment: ACC Must Lead On Climate Change

As the largest publicly owned investor in New Zealand, the ACC board should divest from fossil fuels, demonstrating our leadership role on climate change, Green Party MP Chlöe Swarbrick said today. More>>

ALSO:

Total Officers, Up Less: Coalition's 1800 New Police Officers

The Coalition commitment to add 1800 new Police officers to frontline policing has been achieved with the graduation of 59 constables from the Royal New Zealand Police College today. More>>

ALSO:

Predator Free: $3.5m For New Pest Controls

New Zealand First is proud to announce the Provincial Growth Fund (PGF) has allocated $3.5 million to develop innovative predator control approaches which will reduce the need for repeated 1080 use. More>>

ALSO:

Children's Day: Commissioner Calls For Govt Commitment

“Three decades on, we are able to celebrate some significant changes for children like the recent launch of a Child and Youth Wellbeing Strategy. But we still have a long way to go to prioritise children’s rights.” More>>

ALSO:

Elections: Proposed Electorate Boundaries Released

The Representation Commission is proposing changes to half of New Zealand’s electorates and establishing a new electorate in south Auckland… More>>

ALSO:

"Effectively A Permanent Amnesty": Final Month For Gun Ban Compensation

The firearms buy-back comes to an end a month from today, but the police say the amnesty for returning banned guns will continue into next year and beyond. More>>

ALSO:


SPECIAL GUNS FOR FOREIGN SECURITY:


MORE ARMED POLICE:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels