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Rate changes for Material Damage and Business Interruption

August 2020

Effective 1 September 2020, there will be rate increases for Material Damage and Business Interruption (MDBI) policies due to an increase in claims and reinsurance costs.

Standard Perils

As we are experiencing higher claims costs from repairers and suppliers, including the limited availability of parts due to global supply chain disruptions, we are requiring an increase of three percent on our Standard Perils renewal rates. However, some accounts, e.g. EPS, will require a higher increase as we have been stepping the increases over several renewals.

Natural Disaster

Our Reinsurance costs have increased in certain areas of New Zealand, which translates to a rate increase in specific regions. We are requiring an increase on our Natural Disaster rates as following:

  • One percent in the regions of Nelson and Christchurch.
  • Five percent in the regions of Hawkes Bay, Manawatu, Gisborne and Taranaki.
  • For the Wellington region, the increase will be in the vicinity of eight percent. However, there are some risks that will require a higher rate increase, due to increases being stepped over several renewals.