Kathmandu. Most New Zealanders have supported the need for risk-based pricing in insurance amid growing fears of a natural disaster caused by climate change.
The results came from a survey conducted by the IAG in May. According to the survey, 90 per cent of the respondents expect extreme storms, 89 per cent of persistent and intense floods, and 88 per cent of the coastal floods from the sea level. These concerns are fuelling the demand for a fair and transparent insurance premium structure and strong incentives for risk reduction.
In addition, 60 per cent of respondents agreed that insurance companies should increase premiums for high-risk assets. Similarly, 45 per cent of respondents believe it is best to pay only for the risks faced by people, while 10 per cent believe that everyone should pay the same regardless of the risks.
According to the report, 71 percent are willing to pay more if they live in high-risk areas, while only 17 percent believe that insurance premium should be subsidized for those living in such areas compared to other areas.
Amanda Whiting, CEO of AMI, State and NZI, said the growing weather-related damage underscores the importance of affordable pricing in insurance premiums.
In addition, there is strong support to keep insurance accessible. Nearly 74 per cent of respondents stressed the need for insurance companies to focus on insuring as many homes as possible. – Agency
