Darryl Lew: West Coast Regional Council CEO on the efforts to make insurance more competitive as AA stops offering new policies

West Coast officials are working to make the insurance market more competitive so Westporters can continue to insure their homes.  

AA Insurance has temporarily stopped offering policies to properties in the 7825 postcode due to flood-risk exposure. 

Existing policyholders can renew as usual. 

Regional Council Chief Executive Darryl Lew told Ryan Bridge AA Insurance is the main insurer in the town, so have the largest market share. 

He says they want to write to all insurance companies and the insurance council to try improve the market, given the investment they're making in flood banking.  

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Episode Transcript

Speaker 1 (00:00):
AA Insurance is announce they will not be accepting any
new insurance policies on homes in Westport. This is because
the flooding the weather events. Darryl Loue is West Coast
Regional Countis Chief Executive with me this morning. Daryl, Good morning,
Good morning Ryan. This is temporary, isn't it. They said
they will come back if you can show them it's safer.

Speaker 2 (00:21):
Yes, that's correct, it is temporary. West Countries or councils
are currently building seventeen kilometers of flood banking and in
the town the first of a flood protection skinning for Westport.
And as we do that, we'll write to all insurance
companies and insurance council with the revised flood hazard maps
in the hope insurance market will come back to bear

(00:41):
with more favorable offerings for the town.

Speaker 1 (00:43):
Darryl, If you were wanting to take out a new
policy on a new home, they would say no. But
if you have an existing If someone has an existing
policy on a home and they sell it is can
the home continue to be covered?

Speaker 2 (00:57):
That's my understanding. But lo, that's a question for them
insurance company. What we want to try and do is
really prime the insurance market and make that much more
competitive by writing to all insurance companies. Once we start
building and progressive, we build the flood the flood banks

(01:17):
to try and get a much more favoral insurance situation
for the people of westbook Dal.

Speaker 1 (01:22):
Have they been specific about exactly what they would need
to see before they come back.

Speaker 2 (01:27):
No, they haven't, but to be fair on we are
meeting with them in a couple of weeks to discuss
all of that and what.

Speaker 1 (01:34):
About the others any of them looking shaky.

Speaker 2 (01:40):
The main insurance the town is AA, the predominant insurance,
so really they've got the largest market share. But irrespective
of that, West Coast Regional Council wants to write to
all insurance companies and the insurance council who have been
in discussions with to try and get a better market
going from those insurance companies. Given the less of flood risk,

(02:02):
given the investment we're making in the flood banking.

Speaker 1 (02:04):
And dere who pays for that investment? Can the council
afford to keep doing this or you know, and we've
got a rates cap potentially coming, who pays for all this?
And is it a you know, are you asking for
money from central government.

Speaker 2 (02:18):
For the last few years, the central government has been
back in providing funding for flood schemes for the first
time since Ministry workstays and we're partnering and it's been
and we're very grateful for it. For the communities of
the West Coast and right around New Zealand. From the
regional council sector, we're partnering with the government with local
money and government money going in to pay for these

(02:40):
flood schemes.

Speaker 1 (02:41):
Darrell, appreciate your time, Darryl Lue West Coast Regional Council,
Chief Executive.

Speaker 2 (02:46):
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