Southern Cross set to hike premiums – report

Insurance policy changes outlined
Southern Cross set to hike premiums – report
INSURANCE NEWS
By Krizzel Canlas
18 Jan 2019

Southern Cross is set to hike premiums for its pet insurance, according to a news report.

A report by NZ Herald detailed the changes to Southern Cross’s policies. It noted the insurer’s annual review of its premium rate structure to assess its ability to cover future claims.

“Since 1 December 2018, we have been updating premiums for our PetCare policies to more accurately reflect the risk of the treatment pets might require,” Southern Cross Pet Insurance head of operations Grant Sanders told the publication.

Sanders said the changes will come into effect on the anniversary of a policy renewal, with 79% of PetCare customers seeing a premium increase of less than 10%.

Southern Cross is also reportedly introducing an ageing factor to premium increases, which means the cost will rise gradually over time. The idea is that customers with pets from age one to 15 will now see more gradual increases in premiums, rather than the previous increase when they reached six or eight.

Sanders said annual premium increases would now be driven by the two factors – any rate card increase and the age increase of the pet.

NZ Herald reported that Southern Cross is also updating premiums for some dog breeds. Premiums for bull terriers and French m will increase, while those for fox terriers will decrease.

Earlier this month, Southern Cross confirmed a further rise in premiums for its health insurance.  

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