A range of rate changes will be coming into force from 1 September 2021 across all NZI Home and Contents products for new business and renewals.
The rate changes have been shaped by various factors including location, year of build and sum insured.
The changes reflect the ongoing focus to reflect the risk and cost of cover for natural perils.
In addition, there is also higher claims costs the industry is facing due to high demand in the building industry and pressure in building parts availability. Examples include local and imported timber, and flat glass costs are rising. There has also been an increased home claims frequency since the first COVID 19 lockdown in 2020 which we believe correlates to changes in customer behaviour.
Key point to note for home:
- Building material and labour costs are increasing along with the frequency of claims.
Key point to note for contents:
- Repairs and replacement costs to household appliances, computers and mobile phones are increasing due to expensive technology in latest models, as well as costs for personal use items, such as eyewear and audiology.
Annual sum insured indexation
Indexation changes will be also effective 1 September 2021. The home sum insured indexation rate is reducing from 4 to 3 percent and contents remains unchanged at 2 percent.
Please speak with your personal lines BDM if you have any questions on these changes.