The Fédération Internationale de l’Automobile (FIA) has launched a new Motorsport Insurance Task Force, an initiative that comes amid mounting insurance cost pressures globally — pressures that are acutely familiar in New Zealand’s motor market.
Under the leadership of FIA President Mohammed Ben Sulayem, with Secretary Generals Valerio Iachizzi (Sport) and Willem Groenewald (Mobility) as co-leads, the task force is charged with dissecting the causes of rising premiums, waning insurer appetite, and restricted coverage options. The goal: to deliver actionable guidance and reforms for member clubs worldwide, including those in New Zealand.
“Rising insurance costs risk limiting opportunities and undermining accessibility across the world,” Ben Sulayem said in a statement.
In New Zealand, motor insurance is a substantial part of the market. According to the Insurance Council of New Zealand, gross written premiums in the motor (commercial and private) class reached NZ$3.525 billion in 2024, with incurred claims of roughly NZ$2.185 billion — producing a net claims loss ratio of about 62.25 percent.
But the burden on motorists has grown acutely at the retail level. Consumer NZ and other observers note that over the past two years, some premiums have surged by as much as 46 percent for high-risk demographics such as young male drivers in Christchurch.
Remarkably, recent figures show broader market easing: in the year to June 2025, vehicle insurance premiums climbed a modest 1.7 percent, while wages rose by 2.8 percent — signalling some relief in pressure relative to earlier sharp hikes. Yet premiums remain about 31.7 percent higher than three years ago, outpacing income growth (~13.8 percent) in the same period.
Weather events have also ratcheted cost. Flooding in Auckland and the losses from Cyclone Gabrielle have become major drivers of elevated motor claims, particularly in vehicle write-offs.
Given this context, the FIA’s initiative arrives at a useful moment for New Zealand insurers and brokers to benchmark strategies in a niche but high-volatility class.
The FIA has set a timeline for an interim report at its annual gathering in Tashkent this December. While solutions will not be immediate, the initiative underscores a growing recognition: that without insurer participation, rising costs may stifle participation in motorsport globally.
In New Zealand — where motor claims burden has reached NZ$2.185 billion and premium hikes of 30–46 percent have tested affordability — the global effort may offer useful lessons. Because whether for a rally event in Auckland or a commuter vehicle in Hamilton, the logic of sustainable insurance is universal: it demands data, collaboration, and discipline amid inflationary pressure.
