Insurance Council says a 'low number' of New Zealanders consider changing their insurance providers and urges people to shop around

The Insurance Council of New Zealand (ICNZ) says in the past two years, one in five New Zealanders have switched insurance providers.

This is according to a new survey commissioned by the NZ insurance industry body, which found only 20% of 904 survey respondents had switched insurance providers in the last two years.

Over the past five years, 34% of respondents said they had switched insurance providers, compared with 32% of respondents who reported they had never switched insurance providers.

ICNZ chief executive Kris Faafoi said the survey showed a “relatively low number” of people in NZ consider switching their insurance provider.

He said the ICNZ wanted to encourage people to check out their insurance options and see what deals were out there.

“We know this is a difficult time for New Zealanders dealing with the cost-of-living,” he said.

“Insurance premiums have been affected by a number of factors, some of which are out of our control such as the rising cost of extreme weather events and taxes and levies. Some of those pressures are easing and we are seeing that flow through into premium levels.”

The ICNZ said about 21% of those surveyed said they routinely shopped around when their insurance cover came up for renewal, compared to 25% of respondents who said they never shopped around other insurance providers.

People who have switched insurance providers in the last two to five years were more likely to have been Wellington residents and those on a household income of between $50,000 to $100,000.

“Over half of those insured have been in contact with their insurance provider about their cover over the past two years, outside of making a claim. Some 16% had never contacted their insurer,” the ICNZ said.

Older people were also less likely to have recently switched insurance providers compared with younger people who were much more likely to make the change.

Faafoi said the ICNZ was encouraged that 41% of survey respondents said they regularly read their policy wording when updating their insurance policies, but wanted to see that figure rise in the future. 

In the survey, 8% of respondents said they never read the insurance policy wording.

“It’s important to know that you are adequately covered and also to know what is not included in your coverage. For example, most house insurance only covers sudden damage, not gradual damage. If you are unsure at all, contact your insurance provider for advice,” Faafoi said.