NZ brokers ‘cautiously optimistic’ as recession hits
New Zealand insurers are toughening up their underwriting and raising rates as the country slides into a recession.
Wellington broker Alan Jecks, a director at Alan Jecks Insurance Brokers, says insurers are becoming firmer in their interpretations of policies while rates are continuing to rise.
“We are finding it more difficult to get claims paid straight away,” he said. “A client asked me what’s the point in paying the premium if they’re not going to pay my claim?”
Mr Jecks says most of the insurers he deals with are still pushing prices up and for domestic lines that makes it difficult to compete with the direct insurers.
Auckland broker Alan Black of Black Wood and Doyle Insurance Brokers told insuranceNEWS.com.au the economic slowdown is having an effect.
“Underwriters are looking to increase rates, but conversely clients are looking harder at their expenses than they did the previous year,” he said. “Everything comes back to the buoyancy of the economy. I don’t think brokers will be seeing the growth from their existing accounts that they have seen in the past.
“I think, perhaps naively, that we’re fairly cushioned in NZ, but we are going to be affected by what is happening in the US and China. That will have a trickle-down effect on everybody.”
Christchurch-based Benson Insurance Brokers director Chris Benson told insuranceNEWS.com.au rates were already going up before the recession hit.
“Certainly people are resisting spending,” he said. “They may be looking at ways of reducing their expenditure and insurance is one area they may look to.”
Wellington broker Alan Jecks, a director at Alan Jecks Insurance Brokers, says insurers are becoming firmer in their interpretations of policies while rates are continuing to rise.
“We are finding it more difficult to get claims paid straight away,” he said. “A client asked me what’s the point in paying the premium if they’re not going to pay my claim?”
Mr Jecks says most of the insurers he deals with are still pushing prices up and for domestic lines that makes it difficult to compete with the direct insurers.
Auckland broker Alan Black of Black Wood and Doyle Insurance Brokers told insuranceNEWS.com.au the economic slowdown is having an effect.
“Underwriters are looking to increase rates, but conversely clients are looking harder at their expenses than they did the previous year,” he said. “Everything comes back to the buoyancy of the economy. I don’t think brokers will be seeing the growth from their existing accounts that they have seen in the past.
“I think, perhaps naively, that we’re fairly cushioned in NZ, but we are going to be affected by what is happening in the US and China. That will have a trickle-down effect on everybody.”
Christchurch-based Benson Insurance Brokers director Chris Benson told insuranceNEWS.com.au rates were already going up before the recession hit.
“Certainly people are resisting spending,” he said. “They may be looking at ways of reducing their expenditure and insurance is one area they may look to.”