DTNZ: Consumer NZ criticises soaring insurance premiums and lack of competition

Consumer NZ expert Rebecca Styles has highlighted the steep rise in insurance premiums, particularly house insurance, which has increased by 97% over the past decade and by more than 30% this year alone.

Speaking to state media, Styles attributed the surge to a lack of competition in the New Zealand market, where multiple brands are often linked to the same parent companies.

This limited competition, combined with the need for individual assessments for house insurance quotes, makes it difficult for consumers to compare prices effectively.

Styles also pointed out the disparity between New Zealand and Australia, where consumers can challenge unreasonable premiums.

She urged for similar rights in New Zealand, advocating for an avenue where consumers could contest insurance costs, stressing the need for greater transparency in how insurers use data, such as risk factors like flood zones and fault lines, to justify higher premiums, stressing that this information should be more accessible to customers.

Daily Telegraph New Zealand (DTNZ) is an independent news website, first published in October 2021. - where this article was sourced.