New Zealand has declared insurers are an essential service and can remain open for business even under tough Level 4 restrictions aimed at slowing the spread of the deadly COVID-19 coronavirus.

Insurers sit in the “essential” category alongside supermarkets, banks, doctors, pharmacies, service stations and couriers.

“Only businesses that are essential to the provision of the necessities of life may remain open,” the Government said.

The classification applies to all licensed insurers - life, non-life and health. However, financial advice has been deemed non-essential, so brokers will engage with clients remotely.

New Zealand’s two regulators, the Reserve Bank and Financial Markets Authority, clarified which financial services should be considered as an essential service, with a full list of registered insurers and essential supply chain functions available on their websites.

Insurance Council of New Zealand CEO Tim Grafton says members are activating business contingency plans to protect their businesses and staff.

“Insurance is a vital service to support the financial resilience of New Zealand,” he said.

Suncorp’s New Zealand insurers Vero and Asteron Life have scaled up their work- from-home capacity to enable customer servicing and claims management to continue during the lockdown period.

Tower Insurance CEO Richard Harding says his company has undertaken a “huge logistical, planning and technological undertaking” to allow 95% of Tower employees to perform their roles from home.

“It really is an unprecedented time and we want to keep our team safe and keep helping customers,” he said. “It’s going to be bumpy for the next few weeks. Please bear with us.”

IAG NZ says its AMI stores have closed and call centre hours have been reduced as the company sets up teams to work from home, while its NZI unit is “committed to supporting New Zealand through thick and thin”.

The Earthquake Commission will continue to process claims for damage caused by natural disasters, including reopened Canterbury claims, though face-to-face interactions will cease. That will cause delays to managed repairs currently under construction, as well as onsite assessments and scoping.

On Thursday, New Zealand enforced the closure of all schools, bars, restaurants, takeaway food businesses, cafes, gyms, cinemas, pools, museums, libraries, playgrounds and any other place where the public congregates.