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Insurance Business | 09 May 2016, 11:30 a.m. Agree 0
This insurer chief fears the trend for slashing huge chunks off premium rates is undermining the industry’s reputation. He shared this candid opinion piece with Insurance Business.
  • Boomer | 09 May 2016, 01:36 p.m. Agree 0
    Hmmm. How about asking a broker that has lost a client to an IAG rate chop - particularly to one of the most favoured broker partners "dial-a-rate" facillities! Speaking from experience here.
  • Chris Iszard | 09 May 2016, 01:58 p.m. Agree 0
    I don't think many in the industry would disagree with the comments by Travis.
    For those of us that have been around for several decades this is just another cycle that needs to be negotiated with some common sense, as opposed to a slash & burn mentality.
  • Ben | 09 May 2016, 02:56 p.m. Agree 0
    Sounds like the reality of trying to monopolise the NZ market is biting back... To my mind NZI is losing business because brokers are choosing to divest accounts from a dominant (and sometimes domineering) partner in favour of offerings from underwriters and underwriting agencies that provide a more focused and customer-centric approach. By virtue of their more agile structure and the expertise of their staff these new entrants are often able to offer a more targeted and competitive pricing model which may be seen as "disruptive" but in actual fact is probably more accurate in terms of "science and art" than the expiring terms. One could perhaps assume that layers of management and (some) outmoded methods of pricing and transacting business have resulted in additional costs that are ultimately borne by the customer. I think we can all agree that the tipping point for the significant change in the composition of the intermediated underwriting market in New Zealand was the purchase of Lumley by IAG, #justsaying...
  • F Fanshawe | 09 May 2016, 03:11 p.m. Agree 0
    While I generally agree with Mr Atkinson's comments my observations are that NZI have been as much a part of the rate-dropping activity and have in recent times actually been a key part of accelerating it!

    However if NZI are prepared to admit that they have been a part of the problem and are prepared to use their massive market position to provide industry leadership to bring rates back to a sustainable level then most of the industry would welcome that.

    The big question here is: Are they prepared to let some of their monstrous market share go to do this??....
  • Kelly | 11 May 2016, 11:41 a.m. Agree 0
    Jeez Ben, could'nt have summed it up better if I tried..
  • Paul T | 18 May 2016, 02:09 p.m. Agree 0
    You wouldn't just happen to work for one of these said new entrants now would you Ben...C'mon nicely
  • Observer | 23 May 2016, 09:44 a.m. Agree 0
    Travis does realise that IAG controls 60% of the NZ market doesn't he? If rates are dropping to unsustainable levels IAG are 60% of the problem. When a broker can get 5 quotes - 4 of which are NZI and none of which are the same methinks that the problem lies a little closer to home.
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