Although car insurance is not compulsory in New Zealand, opting for it is a wise decision to protect yourself in unexpected situations. In the unfortunate event of an accident, expenses for vehicle repairs, property damage, and compensation for injuries can accumulate rapidly.

Whether you are a first-time car owner or considering a review of your current coverage, this guide is essential for gaining insights into the benefits of car insurance in New Zealand. Don’t wait to learn the hard way; let’s embark on this crucial journey.

Feel free to reach out to us for a review of your insurance policies or any inquiries you may have.

Recent findings from Vero reveal that nearly half of small and medium-sized enterprises (SMEs) have implemented alterations in the past year affecting their insurance.

About 24% have invested in upgrading machinery or equipment, and 14% have diversified their offerings with new products or services.

Surprisingly, only 10% have factored in these modifications during their latest insurance renewal, potentially leaving them underinsured for their updated circumstances.

This emphasizes the importance of engaging a broker who, during the renewal process, will inquire about relevant changes to ensure comprehensive coverage.

Choosing a broker, such as your local BSI Insurance Brokers, can be instrumental in making well-informed decisions that align your insurance coverage with the evolving needs of your business.

The importance of cyber coverage cannot be overstated. The recent cyberattack on Auckland Transport in late 2023, leading to the disruption of its ticketing system, serves as a timely reminder for all businesses. In an era where technology is ubiquitous, every business, regardless of size, becomes a potential target for cyber threats. Whether you own a mobile phone or a laptop, hackers may have you in their crosshairs.

As the frequency of cyberattacks continues to rise, so does the availability of cyber insurance. we are well-equipped to assist with various policies that cover aspects such as data breaches, theft, and system hacking, among others. We are committed to supporting you throughout the investigation, managing damages, and facilitating recovery in the aftermath of a cyber incident.

Given the ever-evolving nature of cybercrimes and threats, it is crucial to remain vigilant. Regularly reviewing and enhancing your cyber security management policy is essential. Leave no stone unturned when safeguarding your digital assets against external threats, ensuring comprehensive protection for your business.

Feel free to contact us for a review of your insurance policies or any inquiries you may have.

Understanding the Importance of AIA’s Annual Claim Data: Through the claim data provided by AIA, we not only gain insight into the company’s dedication to customer protection but also discover notable variations in claim frequency and payout amounts across different age groups. This data indicates that certain age groups may face more pronounced risks. However, thanks to AIA’s efficient claim settlement capabilities, the company has effectively met its customers’ protection needs even during challenging times.

When it comes to your vehicle, unexpected mechanical failures and breakdowns can be a significant source of stress and financial burden. That’s why BSI Insurance Brokers is proud to partner with Autosure, a leading provider of vehicle insurance, to offer comprehensive protection through Autosure Mechanical Breakdown Insurance.

Comprehensive Coverage for Peace of Mind:

Autosure‘ Mechanical Breakdown Insurance is designed to provide coverage beyond standard warranties, offering protection against mechanical breakdowns and failures in your vehicle. With this insurance, you can enjoy the following benefits:

1. Mechanical Breakdown Coverage: Autosure’ Mechanical Breakdown Insurance covers the costs of repairs or replacement of critical mechanical components in your vehicle, including the engine, transmission, suspension, and electrical systems. Whether it’s a sudden engine failure or a faulty electrical component.
2. Roadside Assistance: Breakdowns can happen when you least expect them, leaving you stranded on the side of the road. With Autosure Mechanical Breakdown Policy, you have access to 24/7 roadside assistance. Whether you need a jump-start, fuel delivery, flat tire assistance, or towing, help is just a phone call away.
3. Rental Vehicle Benefits: If your vehicle requires repairs due to a covered mechanical breakdown, Autosure understands the inconvenience it can cause. That’s why their insurance includes rental vehicle benefits, ensuring that you have a temporary replacement vehicle while yours is being repaired.
4. Nationwide Coverage: Whether you’re traveling across the country or just around the corner, Autosure Mechanical Breakdown Insurance provides nationwide coverage. No matter where you are, you can count on prompt assistance and support in the event of a breakdown.

Your vehicle is more than just a means of transportation; it’s a valuable investment. Autosure’ Mechanical Breakdown Insurance, offered in partnership with BSI Insurance Brokers, provides comprehensive coverage for mechanical breakdowns and failures, ensuring that you can enjoy the open road with peace of mind. To learn more about Autosure’ Mechanical Breakdown Insurance and how it can protect your automotive investment, contact BSI Insurance Brokers today. Our experienced team is ready to assist you in selecting the right coverage for your needs.

According to AMI, the Toyota Aqua has taken over as the most commonly stolen vehicle in the country, surpassing the Mazda Demio, as car theft claims surged in 2022.

Despite accounting for only 1.47% of the national fleet, the Toyota Aqua, also known as the Toyota Prius C, accounted for 11% of AMI’s vehicle theft claims in 2022.

Following the Toyota Aqua, the Mazda Demio now ranks as the second most stolen vehicle, closely followed by the Nissan Tiida. The Mazda Atenza (Mazda 6), Toyota MarkX, Toyota Vitz, Subaru Legacy, Toyota Corolla, Subaru Impreza, and Mazda Familia complete the top ten.

A notable addition to the top ten is the Toyota MarkX, with theft claims surging from 21 in 2020 to 441 in 2022, marking a staggering 2000% increase in just three years.

Theft claims reached record highs in 2022, rising by 43% compared to the previous year, and this trend is consistent with the overall AMI data. Despite a decline in thefts due to the Covid-19 pandemic in 2020, the firm stated that this is an upward trend.

Wayne Tippet, AMI’s executive general manager for claims, emphasized the importance of reviewing insurance details in response to the rising thefts.

“In 2022, we received 8,492 claims for vehicle thefts across New Zealand, representing a 43% increase from the previous year and a 54% increase from 2019.”

Tippet advised taking precautions to make cars less appealing to thieves, such as locking the vehicle, removing valuables, and parking in well-lit areas or off the street. While immobilizers are effective, steering locks can also serve as deterrents if a vehicle lacks an immobilizer.

He also urged people to ensure that the sum insured on their insurance policy is up to date. Due to supply chain delays, parts shortages, and other factors, second-hand cars generally retain their value better than before.

“If the worst happens and your car is stolen and declared a write-off, you want to ensure that your sum insured is appropriate for your car.”

With nearly 3,000 claims for vehicle theft in the past year, Auckland far exceeded Canterbury, which had 1,214 claims, securing the second position.

Recovery rates remain high, with 94% of stolen Aquas, 93% of stolen Demios, and 91% of stolen Vitzes being recovered. This indicates that the majority of stolen cars are used for joyrides or other crimes such as burglaries.

“Almost all of these cars are eventually recovered, suggesting that they are likely stolen for joyrides or other criminal activities,” added Tippet.

Source: 2022’s most stolen cars as theft claims soar by 43% (covernote.co.nz)

Fire and Emergency New Zealand recently proposed a significant increase in the levy on insurance policies to address a funding shortfall resulting from salary increases agreed upon in a collective wages agreement with firefighters. This blog explores the potential impact of this proposed levy increase on insurance policyholders and the concerns raised within the insurance industry.

Proposed Levy Increase and Funding Shortfall: To cover the funding shortfall caused by salary increases, Fire and Emergency New Zealand has suggested a 12.8% increase in the levy on insurance policies. According to a consultation paper, the organization deems expenditure reductions as unrealistic for meeting the costs of the settlement and addressing the funding shortfall while maintaining cash reserves. The paper states that capital expenditure reductions would require substantial cuts, which may not be feasible.

Insurance Council of New Zealand’s Response: CEO Tim Grafton of the Insurance Council of New Zealand (ICNZ) expressed his concerns on LinkedIn regarding the timing of the levy consultation, which was released just before Easter, allowing only 14 business days for submissions during a holiday period. Grafton questions whether Fire and Emergency New Zealand has thoroughly explored potential efficiency gains and pledges to seek answers to such inquiries.

Government Loan and Repayment: Acknowledging the funding issue, the government will provide a loan of $NZ75.4 million ($70 million) to Fire and Emergency New Zealand, which will be repaid over a ten-year period. Although the loan offers short-term funding, Fire and Emergency emphasizes the need for additional funds to repay the government and cover projected deficits. Deferring levy increases would require another loan and create future financial challenges.

Proposed Approach and Impact on Policyholders: Fire and Emergency suggests increasing the transitional levy now to mitigate the impacts over the years and maintain minimum cash reserves. However, this means policyholders would face increased levies for two financial years starting from July 1, 2024. Levies on property and motor vehicle insurance contribute significantly to Fire and Emergency’s revenue, while a Crown contribution of $NZ10 million ($9.3 million) supports public goods and services.

Implications of Wages Settlement: Fire and Emergency reached a wages settlement with the New Zealand Professional Firefighters Union in December, which will result in increased costs across various aspects such as fleet, equipment, and frontline staffing levels. The consultation paper states that these additional costs cannot be accommodated within existing funding levels, leading to projected deficits over the next five years.

The proposed levy increase by Fire and Emergency New Zealand has sparked concerns within the insurance industry. While the organization seeks to address a funding shortfall resulting from a wages settlement, the impact on insurance policyholders is a subject of debate. As the consultation process unfolds, it remains to be seen how the proposed levy increase will be received and whether alternative solutions can be explored to ensure the financial stability of Fire and Emergency New Zealand without imposing undue burdens on policyholders.

Resource: FENZ proposes 13% levy hike (covernote.co.nz)

The Financial Services Council (FSC) of New Zealand posted its quarterly snapshot for the life insurance sector, with the new infographic revealing that the market earned $3.07 billion in annual life insurance premiums.

Term and accidental death insurance topped the life insurance lines with $1.519 billion in annual premium income as of March 31, accounting for almost half of the sector. Second to it was trauma insurance, which recorded $601 million, followed by income protection at $495 million.

According to the infographic, the sector was responsible for the coverage of 4.1 million Kiwis in the past year. The latest tally shows that there are 5.18 million residents in New Zealand.
Claims paid out in the sector also shot up from last quarter, costing more than $300 million in the period ending March 2023. In comparison, for the same period ending December 2022, the life insurance sector paid out more than $275 million in claims.

The rise in claims coincides with the recent industry loss estimates stemming from New Zealand’s 2023 weather events. An updated figure from data provider PERILS puts the industry losses at $1.925 billion, 25% higher than its previous estimate last March.