New Zealand insurers remain focused on supporting customers facing financial hardships caused by the coronavirus outbreak, according to the Insurance Council of New Zealand (ICNZ).

ICNZ CEO Tim Grafton says the commitment to clients and partners has not wavered despite the financial challenges presently facing the industry.

Since the virus outbreak, ICNZ members have introduced such measures as premium payments deferrals, credit term extensions to brokers and motor premium reductions to reflect the decline in vehicle usage.

“All these measures have been done when insurers’ income has also been heavily hit by the collapse in equities, record low interest rates, little new business and looming business closures,” Mr Grafton said.

“This is matched with the higher levels of solvency we must maintain above any other business to meet regulatory and policyholder obligations.”

His comments came as Consumer New Zealand called on insurers to reduce car premiums since residents have hardly been on the road after the Government last month introduced strict curbs on public activities.

Mr Grafton says the risks for insurers have not disappeared even if car usage has declined sharply.

“While motor collision claims are certainly down, vehicles are still subject to risks even when parked such as theft, vandalism and even severe weather like the Timaru hailstorm which damaged thousands of vehicles late last year, causing tens of millions of dollars of damage.

“Similarly, it’s wrong to think that house insurance risks decrease with everyone at home. Actually, many risks increase. Half of all fires start in kitchens, which are definitely being used more, and the risk of property damage also goes up.”