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The elephant in the room: Exploring NZ’s consumer confidence crisis in insurance

The elephant in the room: Exploring NZ’s consumer confidence crisis in insurance

by Andrew
July 29, 2019

In June 2019 Consumer NZ released results from their recent study that set out to benchmark how the insurance industry was performing.

The results were nothing short of astonishing, indicating high levels of complaints and low levels of trust.

It was revealed that just 13% of those surveyed strongly agreed that their insurance provider can be trusted to give them good advice and 41% actually went so far as to disagree.[1]

These numbers may not come as a shock to those who have followed the recent fallout from the Australian Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry which dealt some heavy blows to the finance industry’s reputation on both sides of the Tasman.

While industry giants in New Zealand largely shrugged off the results with a ‘not here’ attitude, the survey’s results indicate that there’s still a gap that needs to be addressed.

Multiple forces at work

In conjunction with the apparent issues around consumer trust, New Zealand is also facing increasing challenges around our risk profile and it’s hitting our premiums hard. Since the catastrophic Canterbury earthquake of 2011, insurers have faced increasing costs of reinsurance which have led to rapidly rising premiums for households.

Climate change is another factor, with a high number of coastal properties under increasing threat of extreme weather events and rising sea-levels, applying further upward pressure on pricing.

When change becomes a necessity

In light of the above, we believe that more needs to be done to help keep customers informed and engaged when it comes to insurance. After all, these products are incredibly powerful and critical to almost everyone because we all have something that we need to protect.

We’re setting out to create a service that connects kiwis to the right policy for the right price, provides tools and know-how to reduce complications at claims time, and at the same time sets a new benchmark for simplicity in this industry.

If you’d like follow our journey then please subscribe to our mailing list. Otherwise, look out for our updates.

Sources:

  1. https://www.consumer.org.nz/articles/fair-insurance/know-the-issue


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