Chief Executive Kirk Hope says it is a practical decision, and the Government deserves credit for listening.
"Health and life insurers do not insure homes, farms or roads against floods and storms. They protect people when they get sick, can’t work or when their family needs support,” says Hope.
"The previous regulations treated very different risks as if they were the same. That added compliance cost of $10–15 million a year without clear value for New Zealanders.”
Hope says the change comes at an important time for the sector and for customers.
“This is a welcome relief at a time when health and life insurers are facing real pressure on premiums and Kiwis are watching every dollar. Removing unnecessary cost from the system is the right thing to do.
“Climate risk still matters and insurers will keep managing it through governance and prudential oversight. But mandatory investor-style climate reporting was not the right tool for health and life insurance customers.
“Good regulation should solve a problem. In this case, the cost was clear and the customer benefit was not. This change gets that balance right.”
Ends