Insurance Council acknowledges EQC premium levy Increase

Press Release – Insurance Council

The Insurance Council has today acknowledged the government’s move to increase the Earthquake Commission (EQC) levy to more adequately reflect EQC’s operating costs.MEDIA RELEASE

11 October 2011


Insurance Council acknowledges EQC premium levy Increase

The Insurance Council has today acknowledged the government’s move to increase the Earthquake Commission (EQC) levy to more adequately reflect EQC’s operating costs.

“Today’s announcement by the government to increase the levy by an additional ten cents per $100 of insurance is a modest increase and clearly reflects the difficult financial times New Zealanders are facing,” the Chief Executive of the Insurance Council, Chris Ryan said.

Chris Ryan noted that the EQC will not rebuild its reserves to the level they were before the September 2010 earthquake for at least 30 years if the current levy of five cents per $100 of insurance is maintained.

“While today’s announcement is effectively a 300 percent increase to take effect in February 2012 it is nonetheless a necessary increase. The Insurance Council strongly encourages all New Zealanders to remain fully insured.”

The Insurance Council will work constructively with the government of the day following the November election on any future considerations regarding EQC’s future.

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