Like-for-like premium comparisons coming for AA Insurance customers

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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 an independently operated, New Zealand-based joint venture between the New Zealand Automobile Association (NZAA) and Vero Insurance New Zealand Limited (VINZL). Since 1994 we have demonstrated trusted expertise in home, contents and car insurance in New Zealand, and in 2018 introduced commercial small business insurance. We underwrite our own policies and sell direct to New Zealanders. Our 860 staff look after almost 470,000 customers with 930,000 policies.

We proudly partner with Eden Park and have been consistently recognised by: Reader’s Digest Most Trusted Brands (11 consecutive years since 2011) and Quality Service Awards for Car, and Home and Contents Insurance (since 2015), Kantar Customer Leadership Index (since 2019), Canstar Blue Most Satisfied Customers (2011-2018), and the Colmar Brunton Corporate Reputation Index (since 2015) that recognises New Zealand’s most successful companies. Last year, AA Insurance was also named Consumer NZ People’s Choice award winner for car, home and contents (since 2019).

AA Insurance has an A+ (Strong) Insurer Financial Strength Rating given by Standard and Poor’s (Australia) Pty Ltd. For further information visit aainsurance.co.nz.

For more information please contact:

Nicole Steven, Botica Butler Raudon Partners, (09) 303 3862, 021 025 31886 or email nicoles@botica.co.nz

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