A major insurance company halts new policies in Westport

Photo: Supplied / Defence Force

Experts are predicting AA Insurance's decision to temporarily stopped offering new home insurance policies in Westport could be the first on many. As RNZ reported this morning, AA Insurance wrote to Buller District Mayor Chris Russell at the end of last year to tell him the company would halt new business, home and landlord insurance policies for properties in the 7825 postcode, which covers Westport, Carters Beach and Cape Foulwind.

Existing policies would remain and there is a transfer policy for anyone looking to buy or sell a house that was currently insured with AA Insurance. It represents a change in approach from insurance companies. Adaptation researcher Belinda Storey, who heads up the consultancy Climate Sigma.

AA Insurance provided a written statement. The company's head of underwriting Dee Naidu said if Westport's flood exposure dropped below its maximum exposure limit in the future, the company intended to reopen its books to new customers.
"This decision reflects the elevated natural hazard risk of flooding in the area, and that our exposure has reached a level where a pause on new policies is the most responsible step to ensure we can be there for our existing customers when they need us most."