Insurance taskforce to deal with rising premiums in Wellington

Insurance taskforce to deal with rising premiums in Wellington | Insurance Business

Insurance taskforce to deal with rising premiums in Wellington

Wellington City Council will set up an insurance taskforce, following a recently held insurance forum in the capital.

In a report with Radio New Zealand, Wellington Mayor Justin Lester said the group would look at how the insurance market was functioning amid massive premium increases, which have also led to claims the market is ‘broken.’

Lester reportedly said they do not have anybody on the taskforce yet as details were still being worked out.

Minister of Commerce and Consumer Affairs Kris Faafoi told the publication the taskforce will help provide information on what the move to risk-based insurance pricing would mean to consumers. He claims he has not seen evidence that risk-based pricing would bring down some consumers’ pricing, or that insurance would remain available across New Zealand.

Read more: Forum delves into insurance solutions for Wellington

“I have asked for more information from the sector and officials as to how this affects consumers and to ensure that consumers will all be treated fairly,” he said. “Information from the Mayor’s taskforce will add to that picture.”

RNZ also quoted former chief executive of the Earthquake Commission (EQC) David Middleton, who said the EQC cap should be raised to $400,000. He claims this would help bring down premiums.

However, a spokesperson from EQC Minister Megan Wood’s office reportedly said they were unlikely the lift the cap to $400,000. The recently increased EQC Cap of $150,000 is high enough to cover 95% of all claims, with private insurers covering claims above that figure, the spokesperson added.