Consumer reveals the best and worst insurance providers

Results from Consumer’s annual insurance satisfaction survey found MAS and FMG were rated highly by their customers, both earning Consumer’s People’s Choice award.

“This is the eighth consecutive year FMG has received the accolade, and customers have voted MAS for People’s Choice for nine consecutive years," says Jon Duffy, Consumer NZ chief executive.

“Winning People’s Choice is no small feat. The fact these two providers have won People’s Choice across multiple insurance categories reflects their continued focus on customer satisfaction.”

The best

MAS and FMG are the top-rated insurers for house, car and contents insurance. Customers praise their value for money, easy-to-understand policy documents and products tailored to customers’ needs. 

MAS had the highest overall satisfaction rating for house insurance at 76%, while FMG ranked highest for contents insurance at 78%. For car insurance, MAS and FMG also took out the top spots, with 81% and 79% respectively.

Duffy emphasises the importance of choosing an insurer that puts customers first.

“New Zealanders should expect their insurer to get the basics right – good communication and customer support – especially now, with insurers needing to update policies to comply with upcoming law changes.”

Consumer’s Insurance Satisfaction Survey found that while most banks scored below average for house and contents insurance, they generally perform better in travel insurance.

“Some banks scored higher for travel insurance, likely due to it being offered free through some credit cards.

“In today’s economy, value for money is a key factor in customer satisfaction.”

The worst

Big brands State and AMI (both owned by IAG New Zealand Ltd) scored below average for house and contents insurance, with significantly lower-than-average ratings for value for money, communication, customer support and tailored advice.

“It's disappointing to see major insurers fall short of the industry average. We’d like to see these big names use their market share to improve customer satisfaction.”

Banks also underperformed when it came to car insurance.

“Four banks – ANZ, BNZ, Westpac and ASB – received below average ratings, with ASB at the very bottom of the pile.”

How to save on insurance

Consumer’s research shows that concerns about insurance costs have risen more than any other household expense over the past 2 years, as premiums continue to outstrip inflation. Duffy encourages consumers to regularly review their insurance policies to ensure they’re getting the best value.

“If you're parking your car in a garage instead of the street – update your policy. We’ve found that switching providers could save you as much as $670 per year in our car insurance survey.

"Adjusting your sum insured or excess are simple ways to lower those premiums,” he adds.