Premium makeup and re-insurance

What's my premium made up of?

Everyone likes to know what they’re paying for. Here’s a simple breakdown of what makes up your premiums.


Insurance companies need insurance too. Who knew, right? Called “re-insurance”, this is provided by companies who operate globally and allows us to cover you if a major natural disaster strikes again. Reinsurance costs more in places where the risk of natural disasters is higher.


Your premiums are also affected by claims inflation (the number and severity of claims made over a year by everyone in New Zealand), as well as your own claim history. Excesses and discounts can nudge your premium up or down.


In the past, the differences in environmental risk across the country haven’t always been reflected in the price you pay for insurance. But recent natural disasters and severe weather events have made it clear that some parts of the country are riskier to live in – and insure – than others. So, we’ve changed the way we calculate premiums to reflect this.

Find out more about risk-based pricing

Our costs

Managing more than a million policies for 400,000 Kiwi’s incurs steadily rising costs. For example, costs of repairing homes continue to rise with materials and labour, so home claims costs have also increased.


Levies are charges that are requested by, and paid to, the Government. They’re legally enforced additions to insurance premiums that help cover the cost of services offered by the Earthquake Commission (EQC) and the Fire and Emergency New Zealand (FENZ).


GST is charged at 15% of the total amount owing. So, if there’s any increase to your premium – including levies – you’ll also be paying more GST.

We're here to help

If you’d like to talk about what makes up your premium – or anything else insurance-related – just give us a call on 0800 100 200

Are you experiencing financial hardship?

Our specialist Customer Care Team is here to support vulnerable customers. If you’re experiencing financial hardship, please fill in this form and one of our team will be in touch with you within five working days. We have a range of ways to help you, so you can stay insured and protected.

Request financial hardship assistance