Friday 28 August 2015

Insurance reputation

There's a new PWC report on NZ's place in the global insurance industry.

It notes that new product development and worries about insurer reputation are bigger issues here than elsewhere.

I note that I've still been unable to find an insurer who will sell me a fairly simple sounding product: in the event of a big Wellington earthquake (we work out a satisfactory definition), I get a big cheque, no questions asked. I'd pay an annual premium based on the risk of that event occurring. This shouldn't be hard. It's even easier than my earlier proposal. I'm guessing that the transactions costs of setting up a first contract in anything weigh heavily where the expected market isn't big.

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