Stars shine at Christmas time
1 December 2017
As the year draws to a close we pause to reflect on the highs, the lows and the new government!
Throughout the year the economy has grown and New Zealand continues to be a desirable destination for the rest of the world to visit. Our property values have increased, unemployment is low, business has been confident and as a nation we are feeling rich.
Here at Star we have experienced strong growth across all our portfolios, contemporary prestige & European vehicles particularly have grown significantly. The dark cloud over this good news is that claims have also increased. A number of years back we would see 16 claims per 100 vehicles, this has risen to a current level of about 25 claims per 100 vehicles. Because of this increased risk exposure the rates have needed to be increased and we appreciate your support in explaining the reasons for the increases to your clients.
For our part we have kept the cost of administration down, contained the costs per claim at a consistent level & our unique process of handling salvage assists in lowering overall claims costs.
This year we have refocussed our business to Star Insurance Specialists from our original proposition which was individual silos with separate brands. Our research showed that we were perceived as “Star” anyway so it was obvious that the single entity was the way to go. We have therefore reconstructed our web page and created portals where brokers can issue Certificates of Currency and access a variety of other administration functions. Just released is the ability to amend some policy details, and see your total portfolio. Your key account managers will keep you updated when they visit your offices.
As I write this we have had our government arrangements clarified. It is my prediction that over the next three years we will experience a downturn from the highs we are enjoying now. Some of the effects will be self inflicted by our government, and some will be as result of international influences.
My advice to you is to pay off debt and do not borrow more than you can afford at an interest rate of 8%.
Despite my pessimism about this time of the year we should be enthusiastic about our good fortune we have living in NZ. As we are celebrating the fine days of summer we should not forget those who do not have as good a fortune and remember to put a little aside for charities that are often overwhelmed at this time of year.