AMI Insurance crisis allows rising cost of household insurance

The earthquake that occurred in Christchurch was to bring the impact would be rising cost of household insurance. The cost of household insurance is expected to rise to 20%, this after AMI Insurance in crisis because they have to pay insurance claims due to earthquakes. Even the New Zealand government has disbursed a grant of $ 500 to AMI Insurance in order to pay all claims. “The intent of the package is to give certainty That all claims will from some meth,” allowing Canterbury’s rebuilding to continue smoothly and give AMI time to find new investment funds, “said Mr. Bill English, New Zealand’s finance minister.

If AMI Insurance is receiving the loan, then the government is entitled to take over ownership and control over the insurance company. AMI Insurance is the second largest insurance company in New Zealand.

Due to the crisis experienced by AMI Insurance, then the household bills will swell by $ 340 per year. The costs will be even larger if insurers persisted after AMI Insurance successfully overcome the earthquake claims. Sue Chetwin, Consumer New Zealand chief executive, suggested that AMI Insurance customers outside Christchurch to choose a new insurance.

According to Sue Chetwin, although AMI Insurance got government support, does not mean the position is 100% safe. Cause, AMI Insurance should discuss this issue with the government. Meanwhile, according to some analysts, AMI Insurance customers will switch to the new insurance if the government does not provide a guarantee. AMI Insurance to seek government assistance on 9 March to address the crisis caused by the earthquake in Christchurch. This leads to investment grade of AMI Insurance fell from A + to A-.

Short URL: http://www.usnews9.com/?p=6723

Posted by on Apr 13 2011. Filed under Business. You can follow any responses to this entry through the RSS 2.0. Responses are currently closed, but you can trackback from your own site.
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