What's risk-based pricing all about then?
New Zealand’s a great place to live. But it’s not all smooth sailing. We’ve been hit hard in recent years, with 150 natural disasters and severe weather events.1
This means some parts of the country are riskier to live in – and insure – than others. So, we’ve changed the way we calculate our home and contents insurance prices to reflect this.A new way to work out risk
In the past, the different environmental risks across the country haven’t been fully reflected in the price you pay for your cover. But with New Zealand being rated the second riskiest country in the world for natural disasters2, we’ve had to take another look at the way we do things.
So, from now on if you live in a part of the country that’s more prone to earthquakes, flooding or storms your premium may go up. But if you live in a region where natural hazards and severe weather events are less likely to occur, then it could go down.Got a question?
If you’d like to learn more about what makes up your premiums – click here to check out the Premiums blog or give us a call on 0800 100 200.
2World at Risk: Closing the Insurance Gap 2018 report