This is edition 2026/019 of the Ten@10 newsletter.
Hi all,
This is the Ten@10, where I collate and summarise ten news items you generally won't see in the mainstream media.
Enjoy!
A Weak review of a broken insurance market
Bryce Edwards
- 💰 Super Profits in Insurance: Insurance corporations in New Zealand are raking in massive profits, with a few companies controlling the market and inflating costs for consumers. Home insurance has risen by 916% since 2000.
- 📉 National Government's Response: The National-led government launched a "deep dive" review of the insurance sector, but critics see it as political theatre with minimal power to address the issue.
- 🏦 Excessive Profits: The top insurers, including IAG and Suncorp, posted over $730 million in profits, while premiums continue to rise, with some companies even withdrawing coverage from high-risk areas.
- ⚖️ Need for a Commerce Commission Market Study: Public-interest group Consumer NZ and Treasury have called for a more rigorous market study to investigate the monopolistic practices of insurers.
- 🚫 Weak Review: The government's review is seen as weak, involving the insurance industry too closely and lacking independence. Insurers have responded positively, signaling a lack of meaningful reform.
- 🤝 Industry Influence: The Insurance Council, led by a former Cabinet minister, has significant political influence, including organizing industry-funded trips for MPs, affecting policy decisions.
- 🌍 Climate Change vs. Market Power: While climate change is driving up insurance costs, it doesn't explain why New Zealand insurers are more profitable than Australian counterparts. Market power allows insurers to pad their profits while hiding behind climate narratives.
- 🏚️ Impact on Low-Income Areas: As insurance costs rise, low-income communities and smaller towns face the withdrawal of coverage, while wealthier households can afford the increased premiums, deepening inequality.
- 🏛️ Conclusion: The current review is insufficient, failing to address the core issues of market power and corporate profits, and risks leaving New Zealanders vulnerable to an unregulated insurance sector.
