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about Your premiums
What can influence insurance premiums
At Vero we strive to develop insurance policies that are accessible to as many New Zealanders and their businesses as possible. But it’s equally important that they are priced in a sustainable way, ensuring we’re able to support our customers both now and in the long term. Many factors are taken into account when determining insurance premiums including:
- Factors that are individual to you or to the item you are insuring which could influence the likelihood or size of a loss. This could include factors such as the location of a property, where items are kept or whether you have a security alarm installed.
- Levies and taxes are added to premiums and are collected by insurance companies on behalf of the Government. Examples include Earthquake Commission levies and Fire and Emergency NZ levies. In October 2022 Toka tū Ake EQC made changes to the levy meaning premiums may change depending on the property, location and how the property risk is calculated. This could have a significant impact particularly in high-risk areas.
- External factors such as inflation have a big impact on our suppliers’, making repairs, replacement and rebuilds (claims costs) more expensive. Premiums may be increased to ensure that these increased costs can be covered.
- Reinsurance costs continue to increase globally. With the increasing frequency and severity of weather events in New Zealand, reinsurers are reassessing their risk exposure and charging more for this essential support. Reinsurance provides financial support for insurance companies when there is extensive damage and claims following an event, also having a high degree of interaction with inflation. It’s like insurance for insurance companies.
Looking ahead
We’re working with local and central government, businesses, and banks to better understand the increasing impact of a changing climate on our communities and determining how this can best be managed.
We’re doing this with the awareness that the choices we make today about managing risk, including climate risk, will ensure the sustainability and longevity of affordable insurance cover for the next generation, and the future sustainability of New Zealand.
- Selecting a higher excess could potentially reduce your premium. You will need to pay the excess when claiming, so choose an amount that you can afford.
- Review your optional benefits. Before your policy renews make sure your optional benefits are still relevant to your current situation.
Take time to check your insurance cover
It’s easy to let your insurance cover automatically renew each year, but we strongly recommend you take the time to review your cover to make sure you are fully covered in case the unexpected happens. There are some easy tools to help you work out how much cover you may need.
Regularly review your sum insured.
Building costs can fluctuate, so it is important to have a recent valuation and to regularly update these.
Check your contents sum insured
is sufficient to cover your belongings using the Contents Calculator.
Important information
The information contained on this page is a general summary and is for information only. Some of the information may relate to only some of Vero’s policies, but not to others. The information is not personalised to your situation and is not a recommendation to obtain insurance, or a particular type or level of cover. This information is not financial advice. You should consider your own circumstances and consult a broker or financial advice provider for individualised advice.
Geting Help
If you’re facing financial hardship and aren’t able to pay your premium, or you’d like to discuss your payment options, contact your broker, adviser or call us on 0800 505 905 and we’ll do our best to support you.
