Compulsory insurance

I was rather disappointed, but not surprised, to see the Insurance Council suggest that the solution to home owners not insuring their properties, is to make such insurance compulsory through rates.

If people choose not to insure their properties, then that is their decision (as are the consequences).

As the sensible President of LGNZ said: “If I was in the insurance industry and one-third of the population wasn’t insured, I’d look very closely at the products and packages,”

Compulsory insurance will remove all incentives for the insurance industry to be competitive.