Log in

New technology leapfrogs competition as Zurich tackles underinsurance for New Zealand small business owners

 

20 April 2022

Zurich Australian Insurance Limited (Zurich) has today announced it will be launching its small business (SME) insurance offering to the New Zealand market. The offering includes unrivalled technology for ease and speed of service, complemented by a team of experts that customers and insurance brokers can talk to.

The launch of Zurich’s SME offering is focussed on tackling high levels of underinsurance in a market where 95% of New Zealand businesses are SMEs, and 25% of these have no insurance at all - equating to around 125,000 small businesses. 

Research amongst Zurich’s Australian customer base has laid bare the precarious position that uninsured businesses can face.  Our data shows that the top five claims made by SMEs in volumes and average claim value are as follows:

  1. Theft and burglary ($5,329)
  2. Faulty products and faulty workmanship ($21,731)
  3. Impact ($6,339)
  4. Water damage ($11,209)
  5. Storm damage ($21,629). 


Although less common, the highest average payouts were for fire damage ($112,114), sprinkler leakage ($100,225) and flood damage ($81,534).

Businesses without insurance will take a direct hit to their bottom line if they encounter unexpected events as reflected in the most common SME claims Zurich has identified. Underinsurance or no insurance is not only about the direct cost of that event, but loss of income if operations are disrupted.

Available through select brokers, the new product offering uses Zurich’s innovative Z.stream technology, a platform that enables brokers to quote and bind new business, efficiently process renewals and have 24/7 access to mid-term-policy adjustments, endorsements whilst accessing claims data and reports in near real time. 

Brett Wainhouse, Regional Manager, New Zealand commented, “SMEs are doing it tough in New Zealand, so we are delighted to be giving brokers the tools and technology to offer small business customers a fast and efficient insurance cover with claims handling that is backed by Zurich’s global strength and local care.

“Our Z.stream technology is unrivalled in this market. This level of sophistication has never been available to New Zealand brokers before now and it’s a key reason why Zurich is a leader in commercial insurance in many global markets. The platform is a gamechanger, focused on speed and simplicity whilst removing legacy inefficiencies and creating a better customer experience.”

The SME offering will have strong appeal to the smaller end of the SME market with a particular focus on retail, property owners, trades and professional offices.

Mr Wainhouse concluded, “Our global expertise in the SME segment means we learn about emerging technologies across the world ahead of the market and we can pass on this intelligence to our commercial motor and property customers in New Zealand, giving them a competitive advantage.”

Zurich’s SME product is offered through insurance brokers only and will be rolled out in the first instance to Steadfast, NZ brokers, and Insurance Advisernet before launching to the rest of the market. For more information visit https://www.zurich.co.nz/products/small-business-insurance.html

<Release ends>

 

Zurich Insurance Group (Zurich) is a leading multi-line insurer serving people and businesses in more than 200 countries and territories. Founded 150 years ago, Zurich is transforming insurance. In addition to providing insurance protection, Zurich is increasingly offering prevention services such as those that promote wellbeing and enhance climate resilience.

Reflecting its purpose to ‘create a brighter future together’, Zurich aspires to be one of the most responsible and impactful businesses in the world. It is targeting net-zero emissions by 2050 and has the highest-possible ESG rating from MSCI. In 2020, Zurich launched the Zurich Forest project to support reforestation and biodiversity restoration in Brazil.

The Group has about 60,000 employees and is headquartered in Zurich, Switzerland. Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX. Further information is available at www.zurich.com.

Disclaimer and cautionary statement

Certain statements in this document are forward-looking statements, including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives of Zurich Insurance Group Ltd or the Zurich Insurance Group (the Group). Forward-looking statements include statements regarding the Group’s targeted profit, return on equity targets, expenses, pricing conditions, dividend policy and underwriting and claims results, as well as statements regarding the Group’s understanding of general economic, financial and insurance market conditions and expected developments. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and plans and objectives of Zurich Insurance Group Ltd or the Group to differ materially from those expressed or implied in the forward-looking statements (or from past results). Factors such as (i) general economic conditions and competitive factors, particularly in key markets; (ii) the risk of a global economic downturn, in the financial services industries in particular; (iii) performance of financial markets; (iv) levels of interest rates and currency exchange rates; (v) frequency, severity and development of insured claims events; (vi) mortality and morbidity experience; (vii) policy renewal and lapse rates; (viii) increased litigation activity and regulatory actions; and (ix) changes in laws and regulations and in the policies of regulators may have a direct bearing on the results of operations of Zurich Insurance Group Ltd and its Group and on whether the targets will be achieved. Specifically in relation with the COVID-19 related statements, such statements were made on the basis of circumstances prevailing at a certain time and on the basis of specific terms and conditions (in particular applicable exclusions) of insurance policies as written and interpreted by the Group and may be subject to regulatory, legislative, governmental and litigation-related developments affecting the extent of potential losses covered by a member of the Group or potentially exposing the Group to additional losses if terms or conditions are retroactively amended by way of legislative or regulatory action. Zurich Insurance Group Ltd undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise.

All references to “Farmers Exchanges” mean Farmers Insurance Exchange, Fire Insurance Exchange, Truck Insurance Exchange and their subsidiaries and affiliates. The three Exchanges are California domiciled inter-insurance exchanges owned by their policyholders with governance oversight by their Boards of Governors. Farmers Group, Inc. and its subsidiaries are appointed as the attorneys-in-fact for the three Exchanges and in that capacity provide certain non-claims services and ancillary services to the Farmers Exchanges. Neither Farmers Group, Inc., nor its parent companies, Zurich Insurance Company Ltd and Zurich Insurance Group Ltd, have any ownership interest in the Farmers Exchanges. Financial information about the Farmers Exchanges is proprietary to the Farmers Exchanges, but is provided to support an understanding of the performance of Farmers Group, Inc. and Farmers Reinsurance Company.

It should be noted that past performance is not a guide to future performance. Please also note that interim results are not necessarily indicative of full year results.

Persons requiring advice should consult an independent adviser.

This communication does not constitute an offer or an invitation for the sale or purchase of securities in any jurisdiction.

THIS COMMUNICATION DOES NOT CONTAIN AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES; SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR EXEMPTION FROM REGISTRATION, AND ANY PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM THE ISSUER AND THAT WILL CONTAIN DETAILED INFORMATION ABOUT THE COMPANY AND MANAGEMENT, AS WELL AS FINANCIAL STATEMENTS.