Download - Insurance Council of New Zealand

The year saw some devastating impacts on members
of the Insurance Council as a consequence of the huge
claims for earthquake. AMI Insurance was supported
by the government and is now likely to be sold to IAG.
Other members of the Insurance Council withdrew from
the market, and others withdrew cover for earthquake.
However, the strength of the insurance industry has been
such that remaining insurers have continued to provide
full cover for the vast majority of New Zealanders
despite the huge impact of the Canterbury quakes. This
again reinforces the value of our international reinsurers
and the international nature of the market.
The Council’s Strategic and Business Plans identify the
priorities and actions in our three core businesses of
Representation, Knowledge Management and Industry
Regulation. I am pleased to report the Insurance Council
Executive has continued to deliver on the objectives of
the Strategic Plan in addition to the work on responding
to the earthquakes.
Considerable effort has been directed to liaison with
related organisations. Constructive and regular
dialogue has continued with the New Zealand Fire
Service, particularly on budgetary and financial
management issues. Regrettably we have not seen any
advances in resolving our concern with the funding of
the Fire Service. Discussions on this issue have been
held with the Minister and there is hope action will be
taken. This will continue to be a strong focus for the
Council in coming years.
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A very constructive and beneficial relationship has been
maintained with New Zealand Police. The Council has
supported a number of Police initiatives, particularly
the commitment by the Police of additional resources to
the area of burglary and car theft. These activities have
shown positive results.
“Twenty billion dollars of insurance
money is now being paid to the people
of Canterbury to rebuild their lives and
businesses.”
Liaison with the Insurance Brokers has been maintained
and enhanced. Our relationship with brokers has
been particularly important this year. On behalf of the
Insurance Council I would like to pay tribute to the
enormous additional efforts insurance brokers have
gone to in responding to the needs of their customers,
not only in the wake of the earthquake claims but also
as the market has responded to the post-earthquake
underwriting and reinsurance environment. We are keen
to continue building a close relationship with the brokers
and increase dialogue between our two industry bodies.
The Council has been extensively tested but coped
admirably with the deluge of regulation through
the Insurance Prudential Supervision Bill and the
appointment of the Reserve Bank as key regulator for
the industry.