Premiums and re-insurance

INSURANCE | 6 August 2019

What makes up your premium.

Everyone likes to know what they’re paying for. So we’ve put together an easy breakdown of what makes up your premiums.


Fun fact: Insurance companies need insurance too. Who knew, right? Called “re-insurance”, this is provided by companies who operate globally and allows us to cover you if a major natural disaster strikes again. Re-insurance costs more in places where the risk of natural disaster is higher.


Your premiums are also affected by claims inflation (the number and severity of claims made over a year by everyone in New Zealand), as well as your own claim history. Excesses and discounts can nudge your premium up or down.


In the past, the differences in environmental risk across the country haven’t always been reflected in the price you pay for insurance. But recent natural disasters and severe weather events have made it clear that some parts of the country are riskier to live in – and insure – than others. So, we’ve changed the way we calculate premiums to reflect this.

Find out more

Our costs

Managing more than a million policies for 400,000 Kiwi’s incurs steadily rising costs. For example, the costs of materials and labour for repairing homes continues to rise, so home claims costs have also increased


Levies are charges that are requested by, and paid to, the Government. They’re legally enforced additions to insurance premiums that help cover the cost of services offered by the Earthquake Commission (EQC) and the Fire and Emergency New Zealand (FENZ).


GST is charged at 15% of the total amount owing. So, if there’s any increase to your premium – including levies – you’ll also be paying more GST.

We’re here to help

If you’d like to talk about what makes up your premium – or anything else insurance-related – just give us a call on 0800 80 24 24.

Are you experiencing financial hardship?

Our specialist Customer Care Team is here to support vulnerable customers. If you’re experiencing financial hardship, please fill in this form and one of our team will be in touch with you within five working days. We have a range of ways to help you, so you can stay insured and protected.

Request financial hardship assistance

Our phone lines are much busier than usual, so there may be a long wait.

Did you know you can pay, claim, cancel, and more online? View all online options.

Alternatively, talk to Sam, our Chatbot, who can help with simple insurance questions.