Insurance brokers warn an IAG-Lumley merger would limit cover, drive up premiums

The Insurance Brokers Association of New Zealand (IBANZ) is warning the Commerce Commission against clearing IAG’s purchase of Lumley, saying it would create a duopoly and further limit cover in risk-prone areas.

Since the Christchurch earthquakes, insurers and reinsurers have reduced their appetite for risk with many “cherry picking” what they are willing to cover, particularly outside of Auckland, says IBANZ chief executive Gary Young.

The lack of competition and pricing alternatives could lead to higher premiums, he says.

 

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