Auckland, 1 June 2020 – AA Insurance customers will be able to see what they paid for last year’s cover on premium renewal notices issued from early 2021, making it far easier to compare premiums from year to year.
“Despite being introduced into the UK market several years ago, and Australia in 2018, like-for-like comparison of premiums, or annualised premiums, haven’t yet been made available by the New Zealand general insurance industry,” says Chris Curtin, AA Insurance CEO. “We really wanted to be transparent and do the right thing by our customers – and as quickly as possible – especially as we know that juggling finances has been particularly difficult for some of our customers during Covid-19.
“Although we were ready to launch this initiative in March,” he says, “the situation with Covid-19 meant we had to reprioritise activities to meet our customers’ immediate needs. Currently we have a freeze on premium increases in place so we will be holding off until early next year when the timing is right and there is a clear space between the premium freeze and this change.
“Waiting for a proposed reform regarding premiums to be passed by law was not an option for us – we do what’s best for our customers because we want to, not because we must,” he says.
“We listened to what our customers were saying about having clarity around premiums and, by providing useful information like what you paid last year and the percentage it has changed, customers will now be able to make an informed decision about renewing their cover. We encourage them to use this information to shop around for the right insurance for their situation and consider price as only one factor in their decision.
“This initiative is part of our philosophy of looking after our customers and doing the right thing,” Chris continues. “It’s about treating our customers with fairness and operating with transparency.”
The premium notices will incorporate the changes that have been made to a customer’s policy through the year, so they receive an accurate account of how much their premium would have been the previous year, based on their current renewal details. For example, if they have changed cars within the last 12 months the notice will update last year’s premium to show what they would have paid, alongside what they’ll pay this year, so they are able to compare like-for-like premiums. If customers have made no changes throughout the year, they will see what they paid for last year’s cover.
“We don’t expect our customers to search through a year’s worth of paperwork to find last year’s insurance premium to make the right financial decision about renewing their insurance,” says Chris. “For us, it’s about helping our customers the best way we can and being clear about pricing is a simple way we can do that.”
About AA Insurance
AA Insurance is a New Zealand-based joint venture between Vero Insurance New Zealand Limited and the New Zealand Automobile Association Limited ('NZAA'). Vero is owned by Suncorp Group Limited, a listed Australian company. NZAA is an incorporated society that is governed by a National Council and Board. Since 1994 we have provided home, contents and car insurance in New Zealand and in 2018 we introduced small business insurance.
We underwrite our own policies and sell direct to New Zealanders. Our New Zealand-based teams looks after 560,000+ customers with more than 1,100,000 policies. Standard and Poor's (Australia) Pty Ltd has given us an Insurer Financial Strength Rating of AA- (Very Strong).
We are consistently recognised in industry awards and honours. This includes being voted the Reader's Digest Most Trusted General Insurer for 14 years running, named Canstar's 2023-2024 Outstanding Value Award winner for Home and Contents insurance and ranked 6th among 50 of New Zealand's top consumer-facing corporates in the Kantar Corporate Reputation Index in 2024.
Find out more at www.aainsurance.co.nz
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AA Insurance Media Team
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