Earthquake Commission (EQC) Minister Megan Woods and the Insurance Council of New Zealand (ICNZ) will attend a forum called by Wellington’s Mayor to discuss policy affordability fears.

“ICNZ has been invited to attend and speak and we have accepted,” CEO Tim Grafton told insuranceNEWS.com.au. “ICNZ is always happy to contribute to stakeholders’ and the general public’s better understanding of insurance issues.”

Mayor Justin Lester called the June 10 forum after IAG told customers they may see price changes as EQC reforms take effect from July and the company ensures premiums reflect risk and costs.

Customers living in areas more prone to natural disasters and severe weather events face higher premiums, while those in more benign areas may pay less.

“I want to canvass issues in the Wellington market and look at the immediate and long-term future for people needing insurance,” Mr Lester said.

“It may be that the Government needs to consider what insurance companies are required to offer in a market, and they may have to offer an affordable option where they operate.”

IAG and body corporate and homeowner representatives are also invited to attend.

Mr Lester says IAG has 40-50% of the Wellington market and premium increases could affect many people, including those unable to afford higher payments.

Wellington apartment owners have already seen sharp price rises in the past couple of years, leading some to opt out of cover altogether, according to reports.

Suncorp New Zealand CEO Paul Smeaton told an investment conference there is a growing emphasis in the industry on address-based pricing, specifically in high-risk natural hazard areas such as Wellington.

“Unlike some participants that are either withdrawing or ceasing to grow in some of these areas, we remain committed to being an insurer for all New Zealanders, not just Auckland,” he said.

“To allay any concerns with this strategy, we continue to actively monitor our exposure in these high-risk areas.”

Mr Smeaton says if Suncorp’s market share in any high-risk areas reaches uncomfortable or unsustainable levels, the company will revisit its approach.