Johnston was now requesting reinsurers reduce their prices. Suncorp New Zealand’s reinsurance costs rose by 36% in the past financial year.

Reinsurance was one of the reasons insurance premiums charged to customers had become more expensive in every category, even outpacing general consumer price increases.

Insurance inflation rose by 14% in the year to June, making it one of the most significant contributors to CPI, according to Statistics New Zealand.

“It gives me no pleasure that insurance inflation is sitting above CPI. It’s uncomfortable. But it’s necessary in terms of having a sustainable insurance market going forward.”

Suncorp’s premiums rose by 17% on average in New Zealand, with a 23% increase for its consumer policies – the largest price hikes across the company’s offerings.

Suncorp was one of many general insurers, including IAG, NIB and Tower, which had reported recent increases in profitability recently, after some took financial hits during Cyclone Gabrielle and the Auckland flooding events.

Watch Steve Johnston discuss the insurance giant’s margins and insurance affordability in today’s episode of Markets with Madison above.

Get investment insights from executives and experts on Markets with Madison every Monday and Friday here on the NZ Herald, on YouTube and wherever you get your podcasts.

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Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.

Madison Reidy is the host and executive producer of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.