New Zealand Labour Party

Hefty insurance costs deserve closer scrutiny

The Government needs to take a close look at practices that may be forcing Kiwis to pay more for their insurance or preventing them from taking out insurance, Labour's Commerce spokesperson Kris Faafoi says.

"A report released today raises some questions around the nature of the insurance sales market and whether customers are getting a fair deal.

"These issues may be costing Kiwis millions of dollars with premiums potentially 10-15 per cent higher than they should be.

“Further investigation of why this is happening should be part of the Government's ongoing review of the Financial Advisers Act 2008 and the Financial Service Providers (Registration and Dispute Resolution) Act 2008.

"The Christchurch earthquakes have shown us that New Zealand needs to have a transparent insurance system and products that are suitable and affordable.

"The Government has a role to play in ensuring New Zealanders are getting value for money when taking out insurance,” Kris Faafoi says.