And from David’s speech …
Just as KiwiBank gave us a customer-focused, low cost Kiwi-owned bank, KiwiAssure will give everyone a choice for better service, competititive premiums and local ownership that keeps profits here.
KiwiAssure will be a sister company to KiwiBank, within the NZ Post Group.
And like KiwiBank, it will offer customers an alternative and raise the bar across the insurance industry.
The proposal is bound to be popular. After the problems with AMI insurance and the need to bail this company out the thought of a local Insurance Company which is able through competition to keep premiums down is something that should appeal.
We used to own an insurance company, State Insurance, which functioned perfectly well for decades. As part of the big sell offs that happened in the 1990s it was sold to IAG.
It is not as if privately owned insurance companies are managed better. AMI Insurance which had a dominant share in the Christchurch Market before the earthquakes failed essentially because it was carrying too little reinsurance. After costing the Crown $254 million it is now owned, as is State Insurance, by Australian company IAG.
This is one further policy proposal that neatly differentiates Labour from National and shows that Labour intends to be an active rather than a passive manager of markets. And the suggested announcement today about affordable housing will be interesting.