Global report on NZ risk

When you think about living and starting a business in New Zealand, the words safe, secure and stable come to mind. “Risky” however, not so much. Yet that is what New Zealand’s insurance market has been named according to the 2018 major global insurance report titled: A World at risk, Closing the insurance gap by reinsurer Lloyds.

The report ranks 43 countries on their expected loss from a natural disaster, based on how probable a natural disaster is to happen, and multiplying that by the cost. New Zealand comes in at number two on that list, behind Bangladesh at number one.

Ah, you think, yes that sounds about right, New Zealand does sit on the ring of fire, the area in the world where earthquakes and volcanic activity are most likely to occur. With that in mind, we have to ask, do you have sufficient insurance to cover potential loss from a natural disaster? The chief executive of the Insurance Council of New Zealand says maybe not.

Although NZ has a high percentage of people in the market covered by insurance, it may be possible that each individual is not insuring their assets to their full value. Under-valuing your assets can make you particularly vulnerable if a disaster were to strike. For example, if one has business insurance, it is possible that one would be paying annual insurance on the value of the business. However, the cost to demolish and rebuild a building destroyed by a natural disaster is considerably higher than the perceived market value of the business itself. Judging by the fact that New Zealand is still paying for the 2011 Canterbury earthquake, the market value of the buildings of those insured wasn’t enough to cover for a total demolish and rebuild, which ultimately has left a lot of Kiwi businesses struggling and/or displaced.

How can I get the best insurance protection for my business?
Overall, the NZ insurance market is tough to navigate with insurers contracting and premiums rising due to an increased amount of claims. Our advice to you would be to go through a trusted, passionate insurance broker who does their very best to get you the best insurance deals, leading to the best insurance protection. Bonded NZ is a specialist insurance broker who is available to help businesses small and large with specialist business insurance. Contact us today to find out how we can help you.