Back to Normal - Post COVID-19
It seems lately that life is returning to it’s simple normality after a year of unknown and uncertainty. After waking up each morning and looking at “Stuff” or, waiting for the early morning news or, eagerly anticipating the 1.00 pm updates or, the special announcement by the Prime Minister, life now seems a bit ordinary! Just about the only thing we can’t do is travel beyond our shores, but it looks like even that will return at least a little back to normal. Boring!!
If it wasn’t Covid with it’s levels of lockdown continuously changing, then it was Donald Trump and the US elections. And if it wasn’t Trump and the feeling of “what’s he said now!!”, then it was our own political scene. For all intents and purposes all that has pretty much gone. “Stuff” is boring and has lost it’s eagerly awaited morning read.
One thing we have learned and are still realising, is how matters and circumstances outside of our borders have strongly influenced our lives. Whether it be lockdown level because of what’s happened in Auckland or whether we have to wait for months for delivery of goods and supplies due to what’s happening overseas. We’re fine! Why do we have to suffer because of others? I guess it’s something we just have to accept and carry on. I said this before and I’ll say it again, let’s just worry about the things we can control and not things we can’t.
One of the questions I’ve had recently more and more from clients is the increase in insurance premiums. This is also partly influenced by what’s happening overseas. Most of our insurances policies, all insurances including house and contents, are reinsured overseas. This means that in some cases up to 90% of insurances are covered by overseas based reinsurance companies. Because of that they set the rules, including what they charge our insurance companies for the benefit of having their claims paid. This in turn is influenced on what’s happening on an international bases. It’s determined by levels of claims worldwide.
The insurance that has seen the most increase in premiums is Private Medical Cover. This is a more local issue in that only a small part of Medical is reinsured. For the most part medical claims are covered by each insurance provider themselves. That has been influenced by a combination of increased medical costs and an increase in claims. The more people have medical cover the more claims are made. The more claims are made the more medical providers and resources are needed. That again has an influence on costs.
The second type of cover that has seen increases in premium has been disability cover such as Income Protection and Trauma claims. Again, more people have this cover, so, more claims. More claims, more costs. This is, to a degree, dependant on overseas trends, particularly for the larger and long term claims.
If you’re finding premiums are getting out of control, then there are things we can do about that. There are options rather than just cancelling altogether. Sometimes it’s better to have something in place rather than nothing at all. All personal risk insurances i.e. Life, Health and Disability insurance, go up with age. But with age often comes change in circumstances and as such needs for insurances change. We can help with that. We can guide you through what’s a “nice to have” as opposed to what’s a “need to have”. If this is you, then give us a call…
Afterall, it is what we do… creating certainty.
Cheers Hank.
Hank Van Keulen
EMAIL: admin@ppnzl.co.nz
Ph: 021 357 062