Dear Valued Clients, As 2024 draws to a close, we know many of you are gearing up for some well-deserved time off. Whether it's spending time with loved ones or simply taking time for yourself, this season is all about recharging, reflecting on the year gone by, and getting ready for what’s next.

The official cash rate (OCR) dropped 50 basis points to 4.25% 27 November, with the RBNZ's Monetary Policy Committee noting that “inflation expectations at all horizons are close to the target midpoint”. They added that "With significant spare productive capacity expected in the economy over the next 12 months, the Committee is confident that remaining inflation pressures will abate”.  Now is a good time to provide a final 2024 update with our views on the current state of the general insurance market alongside the broader economic backdrop as we start to plan for 2025.

Richard starts this week and with it an exciting opportunity for both Richard and aibGROUP clients. With over 20 years of commercial insurance market experience, Richard brings extensive knowledge and insight that will be invaluable to our clients.

The CrowdStrike outage in July highlighted the need to have a robust Cyber Risk Protection policy in place. Now is the right time for you to take another look at Cyber Risk Protection with aibGROUP insurance.

Over the past 3 months, we have seen further market news and announcements that makes it worth updating you all again alongside our views on the current state of play within the general insurance market and the economic environment we are all navigating.

Many of our clients take advantage of our premium funding services. Spreading your insurance premiums over the annual period of the policy contract smooths out cash flow. Paying via a regular instalment plan is flexible, convenient, and helps make budgeting less cumbersome. Find more details is the download below.

In New Zealand the firefighting services are funded by a tax, the Fire & Emergency Levy. This levy is added to the insurance premiums for personal and commercial property, motor vehicles, contract works and other insurance policies.

As we approach the halfway point in 2024, we thought it would be an ideal time to update all of you on the current state of play within the general insurance market. We will also discuss the broader economic environment, our expectations for the next 6-12 months, ongoing risks to manage, and some helpful tips to navigate this insurance cycle and control costs.

National Hazards Cover will operate under the Natural Hazards Insurance Act from 1 July 2024. Attached are details around this change and what cover you have. Coverage points remain similar and access to NH Cover is managed via your private insurance policy (Like house and contents policies)

Businesses who employ staff will typically carry a Management Liability policy package. However, that policy package may not automatically include Employment Disputes (Employment Practises) protection. Some Insurers tend to see this as an optional policy line or they may not wish to offer it. Others may include it automatically for a specific limit of indemnity that should be reviewed. For those businesses operating with staff in Australia and/or further afield the discussion and coverage needs further assessment to cover the right jurisdictions/territories the business operates in outside of New Zealand.

In recent years, New Zealand has witnessed a concerning surge in commercial crime, with burglary topping the list of insurance claims. According to data from NZI Insurance, commercial crime claims rose by a significant 26% last year, with Auckland bearing the brunt of this increase, accounting for 37% of the claims. This alarming trend underscores the pressing need for businesses across the country to fortify their defences against theft and burglary.

On February 22, a fire swept through a 14-story apartment block in the Campanar neighborhood of Valencia, Spain. Within minutes the entire building was engulfed in flames, and so far 10 people have died.