CPT Update 17-02 – Insurance Renewal

18^th April 2017

Thank you all for the timely receipt of insurance renewal information.  We are pleased to advise that the 2017/18 insurance renewal has been completed.  Below are the main points for your information:

1. Cover: The Material Damage insurance cover for the Diocese has risen from $295m to $321m in this renewal period.
2. Rates: Despite a number of major events in New Zealand [Kaikoura earthquake sequence, major fires et al] which have had an impact on insurance premiums generally, NZI, our key insurer, has maintained the same rate of cover for material damage as last year – 4.4c per $100 of cover.  This is a very pleasing result.
3. Term: NZI have offered to maintain the rate of cover for a further three months.  As a result, this current renewal is for a 15 month period to 30^th June 2018.
4. Commercial Policy Cover: NZI have moved residential properties into the commercial Material Damage policy [with the existing residential benefits and conditions].  This change means that our brokers Crombie Lockwood and the CPT Property team will need to deal with only one team at NZI for claims and other insurance matters, thus streamlining day-to-day operations.
5. Natural Disaster Cover: CPT continues to encourage parishes to consider Natural Disaster cover for churches and halls.  Please contact the CPT Property team if your parish wishes to investigate this option.  The natural disaster premiums are approximately three times the material damage premium.
6. Fire Service Levy [FSL] Changes: Whilst proposed changes to the Fire Service Levy will not (due to timing0 affect the Diocese for this renewal period, we are maintaining a watch on proposed legislative and rate changes.

The New Zealand Fire Service Commission will increase the Fire Service Levy from 7.6c to 10.6c per $100 of cover from 1^st July 2017 insurance renewals.

With the amalgamation, from 1^st July 2017, of the New Zealand Fire Service and rural fire services into Fire & Emergency New Zealand, consideration is being given to changes to the funding model and how the FSL is charged.  Given that the rate of FSL is so high, CPT and its brokers, Crombie Lockwood, will monitor proposed changes and make submissions where appropriate.

My thanks to the CPT Property team and Crombie Lockwood for a very pleasing result.