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Follow on Google News | Market Report, "New Zealand Insurance Report Q1 2011", publishedFast Market Research recommends "New Zealand Insurance Report Q1 2011" from Business Monitor International, now available
The second key aspect, which almost certainly goes some way to explaining the first, is that a number of public sector institutions socialise the coverage of risks, which would in almost all other countries be insured through the private sector. The Earthquake Commission (EQC) covers every insured household against catastrophes (to a limit of NZD100,000 for homes and NZD20,000 for contents). The EQC lays off its risk in the global catastrophe reinsurance market by way of a government guarantee. The (underfunded) Most crucially, the Accident Compensation Corporation (ACC) assumes all risks associated with injuries in New Zealand. The laws governing the ACC - the details of which have changed many times since the inception of that institution in 1974 - do not permit injured parties to undertake lawsuits. The costs of the ACC - substantially medical/rehabilitation treatment costs and payments to people who are unable to work - have ballooned in recent years and, in particular, in the year to June 30 2009. Over that 12-month period, net levy income received by the ACC (ie receipts that are roughly analogous to premiums received by insurers providing accident/health/ The other key aspect of New Zealand's insurance sector is that barriers to entry and exit are low. Put another way, corporate decisions are not necessarily driven primarily by issues and themes in the New Zealand insurance industry. Once again, a comparison of New Zealand with the larger markets of Central and Eastern Europe is useful. In Poland, the Czech Republic, Slovakia, Hungary and other nearby countries, almost all insurers - be they active in the non-life segment, the life segment or both - fall into two categories. The first category includes multinationals that have a clear commitment to developing a substantial business across Central and Eastern Europe, such as the Generali/PPF joint venture (JV) and Vienna Insurance Group. The second category, of which Poland's PZU is the largest organisation by far, consists of indigenous organisations that, like insurers in the first category, have a vested interest in promoting the long-term development of insurance and organised savings. In New Zealand, in contrast, most of the major insurers - such as IAG New Zealand, Vero and Lumley General in the non-life segment, and Sovereign Insurance, AMP, AXA New Zealand and Asteron in the life segment - are subsidiaries of Australian organisations (in AXA's case, the old National Mutual Life Association) We continue to look for non-life premiums of NZD3,439mn in the year to September 30 2010. This represents an increase of just 1% over the previous corresponding period. We note that IAG, which accounts for about one-third of the entire market, reported that gross written premiums increased by just 3% in the year to June 30 2010. The ISI reports that life premiums increased by 8% to NZD1,700mn in the same period. This implies that total insurance premiums in New Zealand in 2010 will amount to around NZD5,139mn. In 2015, we expect that the corresponding figures will be NZD4,332mn, NZD2,637mn and NZD6,969mn. In terms of the key drivers that underpin our forecasts, we are looking for non-life penetration to remain constant at around 1.80% of GDP. Life density should rise from US$279 per capita to US$420. BMI's proprietary Insurance Business Environment Rating for New Zealand is 62.2. For more information or to purchase this report, go to: - http://www.fastmr.com/ About Business Monitor International Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at http://www.fastmr.com/ About Fast Market Research Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156. # # # Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available. End
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