In answer to a query from Roz, I came across the following website: https://www.icnz.org.nz/media-resources/market-data/
If you look under "Domestic Buildings and Contents 12 months to September", you will see that the insurance companies loss ratio is around 50% - 60%. The balance is expenses (e.g. staff & company expenses) and profit.
In 2019, of $1.8 billion of premiums taken in (exclusing GST), they paid out $609 million (32%) in claims. (This figure is a bit misleading though, because the the claims figure doesn't include reinsurance, which is a necessary expense.)
So if we do some self-insurance, either pre-funded with a levy or just a split of the excess on each claim, we would be trading some voluntary work in the group (claims assessing) in order to avoid paying wages, overheads and profit margins of insurance companies and brokers.
Thanks,
Alex
I agree with Gay on Higher excess = lower premium.
I think we can also do a small amount of self-insurance, e.g. a higher excess, say $10,000 and then work out a way to split the cost of a $10,000 claim between us, or establish a separate body corporate levy fund to cover small claims. We could find out how much a larger excess saves us on premium to work out if this is worthwhile.
Thanks,
Alex
On 20/01/21 9:30 pm, Gay Buckingham wrote:
Hi five to AnthonyWe probably don't need to worry about replacement of things like basins and loos - they miraculously seldom break and if they do are cheap to replace and if plumbing is required, still minor and would cost well below excess. (Higher excess = lower premium = good in my book.)
Gay Buckingham027 4544012
On 20/01/2021, at 8:41 PM, High Street Cohousing <ucoldunedin@gmail.com> wrote:
FYI - from Tina about her ongoing negotiations with NZI
Anthony had got a copy of information for insurance companies prepared by Formance, the people who made our SIPs panels, and Tina will be forwarding that to NZI. The document sets out very clearly the difference between our SIPs panels (structural) and traditional non-structural panels which are what current insurance policies are based on.
Anne
---------- Forwarded message ---------
From: Tina Gillan <Tina.Gillan@rothbury.co.nz>
Date: Wed, Jan 20, 2021 at 7:10 PM
Subject: RE: Toiora High St Cohousing
To: High Street Cohousing <ucoldunedin@gmail.com>
Hi Anne
Thank you for the attached this was not on my file, so I have forwarded to NZI.
Where we are to date:
Excess:
I approached NZI to ask if they would reduce the excess for window glass and fixed porcelain breakages (e.g. toilet bowl/hand basins/bath) - they have advised No (whiteware forms part of contents insurance).
I have now re approached NZI for the second time to see if they will reduce the $2500 excess, as this is my second attempt regretfully if they advise No again then we will need to accept the excess is $2500.
Common House:
We have received confirmation the Foamed Plastics Insulation Panel Endorsement does not apply to the Common House
Foamed Plastic Insulating Panel Endorsement (attached)
You may recall in our discussion I wanted to approached NZI and have this endorsement more suited to a “domestic” situation as opposed to the attached which is more suited to an Industrial/Commercial situation
In principal NZI have agreed to do this but this is something they need to work through - I have diarized to follow up in a months time with NZI.
Kind regards
Tina
Tina Gillan
Senior Commercial Broker
QIB
DDI: +64 3 470 3668 ext 3908 M: +64 21 988 159
A referral is the best compliment I can receive. If any of your friends, family or business associates require assistance with insurance, please get in touch.
Rothbury Insurance Brokers Otago
Level 2, Public Trust Building, 442 Moray Place, Dunedin 9016
PO Box 1321, Dunedin 9054T: +64 3 477 8217 F: +64 3 477 6478 W: www.rothbury.co.nz
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From: High Street Cohousing <ucoldunedin@gmail.com>
Sent: Wednesday, 20 January 2021 10:41 AM
To: Tina Gillan <Tina.Gillan@rothbury.co.nz>
Subject: Toiora High St Cohousing
External mail - think before you click
Hi Tina
Attached is a document from Formance, the manufacturers of our SIPs panels, prepared for insurance companies. I presume you already have a copy.
A question: when you said you were seeking a lower excess for "windows and whiteware", what is included in 'whiteware'? I immediately thought of appliances, but you mentioned toilets and basins. Could you tell me what is covered by this term in insurance terms?
We still have not been notified of when the building contract will be complete, though on site they are talking about the end of January. We will let you know as soon as we have a date.
Warm regards,
Anne
<NZI_MD_Foamed_Plastics_Insulating_Panel_Endorsement Nov 2018 Final.pdf>_______________________________________________
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