Curta and welcome to the special episode of Shared Lunch. Today we're talking about the world of insurance. We'll be diving into specifically car insurance, why your premiums are going up, tips on how to make sure you've got the right cover in place, and innovations that are happening in the insurance space.

Curta and welcome to the special episode of Shared Lunch. Today we're talking about the world of insurance. We'll be diving into specifically car insurance, why your premiums are going up, tips on how to make sure you've got the right cover in place, and innovations that are happening in the insurance space.

I'm Sonya.

I'm Sonya.

I'm the co CEO and co founder of shares E's, and today I'm joined by Andy Kohn, who's the co founder of our insurance partner COD.

I'm the co CEO and co founder of shares E's, and today I'm joined by Andy Kohn, who's the co founder of our insurance partner COD.

Investing involves the risk you might lose the money you start with. We recommend talking to a licensed financial advisor. We also recommend reading product disclosure documents before deciding to invest. Everything you're about to see and here is current at the time of recording.

Investing involves the risk you might lose the money you start with. We recommend talking to a licensed financial advisor. We also recommend reading product disclosure documents before deciding to invest. Everything you're about to see and here is current at the time of recording.

So well, for Mandy, tell us, car do you diferent insurance?

So well, for Mandy, tell us, car do you diferent insurance?

Well, I did a degree in physics and maths, and then there are the holiday jobs that come out of that. But one that there is is the actual aerial training path and insurance. It's all about the maths and statistics of insurance. I also knew about that because my father was an actuary, and so that was the first job I.

Well, I did a degree in physics and maths, and then there are the holiday jobs that come out of that. But one that there is is the actual aerial training path and insurance. It's all about the maths and statistics of insurance. I also knew about that because my father was an actuary, and so that was the first job I.

Got Yeah, exciting that you've followed, you know, and your dad sits there, so you started co Do you want to tell us a bit about that?

Got Yeah, exciting that you've followed, you know, and your dad sits there, so you started co Do you want to tell us a bit about that?

Yeah, so do I suppose there was a bit that led up to it.

Yeah, so do I suppose there was a bit that led up to it.

My brother and I were working in Germany at the time.

My brother and I were working in Germany at the time.

We got over there for a week.

We got over there for a week.

It ended up working for a digital insurance player, and while we were up there, we became really impressed with what the digital solution and insurance could mean. And so then when we moved back to New Zealand and we looked at the market and so we thought, generally a digital assurance proposition is a good thing globally and makes a lot of sense. And then in New Zealand, we quite like the fact that the market is dominated by two large players. A lot of people don't know, but most of the brands in New Zealand lead back to one of two large really had most companies they have about ninety percent market share in the lines that we operate.

It ended up working for a digital insurance player, and while we were up there, we became really impressed with what the digital solution and insurance could mean. And so then when we moved back to New Zealand and we looked at the market and so we thought, generally a digital assurance proposition is a good thing globally and makes a lot of sense. And then in New Zealand, we quite like the fact that the market is dominated by two large players. A lot of people don't know, but most of the brands in New Zealand lead back to one of two large really had most companies they have about ninety percent market share in the lines that we operate.

So we thought that the digital.

So we thought that the digital.

Transition was something that was coming and it's going to be good for customers and a good opportunity.

Transition was something that was coming and it's going to be good for customers and a good opportunity.

And then we also liked the.

And then we also liked the.

Market the namicing Yeah cool, Why did you think it was good for customers.

Market the namicing Yeah cool, Why did you think it was good for customers.

Or what was it, gap me sol Yeah, yeah, absolutely, So I mean that all sounds a bit worriing for company has got. What it means for them is insurance is cheap, so we can bring the price down and also the service level can be better. So if you think about the price point, we aim to be sort of fight it's ten percent cheaper than our competitors. And then also on the service level, if you need to call us. Firstly, you probably don't need to because you can do it all online. But if you do it, we'll arts the phone in about thirty seconds compared to say thirty minutes.

Or what was it, gap me sol Yeah, yeah, absolutely, So I mean that all sounds a bit worriing for company has got. What it means for them is insurance is cheap, so we can bring the price down and also the service level can be better. So if you think about the price point, we aim to be sort of fight it's ten percent cheaper than our competitors. And then also on the service level, if you need to call us. Firstly, you probably don't need to because you can do it all online. But if you do it, we'll arts the phone in about thirty seconds compared to say thirty minutes.

So les for about the assurance industry broadly, and so what's been happening lately?

So les for about the assurance industry broadly, and so what's been happening lately?

Yeah, so I suppose in subways not a lot. Assurance is the safe thing. It's been for hundreds of years. But then in New Zealand specificularly last.

Yeah, so I suppose in subways not a lot. Assurance is the safe thing. It's been for hundreds of years. But then in New Zealand specificularly last.

Year and the premiums went up a lot, and then car insurance, which is what we do and know really well. There were a few factors that played into that. One of them was there's quite a lot of inflation, so inflation was running really hot last year, and then car insurance inflation as a little bit more than background inflation. Plus then we had the floods in Auckland and we had the Cyclone Gabriel as well, So all of that happened all at once, and so car insurance prices went up by sever thirty percent or more any year, which was really quite unheard of. And then that's having causing some bigger discussions to happen about what that means for home insurance in the market.

Year and the premiums went up a lot, and then car insurance, which is what we do and know really well. There were a few factors that played into that. One of them was there's quite a lot of inflation, so inflation was running really hot last year, and then car insurance inflation as a little bit more than background inflation. Plus then we had the floods in Auckland and we had the Cyclone Gabriel as well, So all of that happened all at once, and so car insurance prices went up by sever thirty percent or more any year, which was really quite unheard of. And then that's having causing some bigger discussions to happen about what that means for home insurance in the market.

When you think about also at the same time, like the new technologies that are coming out around insurance, what do you see impacting the ad.

When you think about also at the same time, like the new technologies that are coming out around insurance, what do you see impacting the ad.

Yeah, there are some technologies that can actually bring down the risk, and I think that's what we find most exciting is you know what's here's your expected claims cost, and then what can you do that is sort of brings that down in a cost effective manner. And so for home insurance that's relatively difficult. You just need homes to be built a little bit better or not necessarily in the floodplanes. And then for car insurance there were specific examples, say twyter aquads that were getting stolen and alarm and rate we looked at what it would cost to cover them without an immobilizer and it worked out to be about three.

Yeah, there are some technologies that can actually bring down the risk, and I think that's what we find most exciting is you know what's here's your expected claims cost, and then what can you do that is sort of brings that down in a cost effective manner. And so for home insurance that's relatively difficult. You just need homes to be built a little bit better or not necessarily in the floodplanes. And then for car insurance there were specific examples, say twyter aquads that were getting stolen and alarm and rate we looked at what it would cost to cover them without an immobilizer and it worked out to be about three.

Grandy and which is just how what's the what are they worth?

Grandy and which is just how what's the what are they worth?

That be like six grand ten.

That be like six grand ten.

Something like that?

Something like that?

You just can't pay that.

You just can't pay that.

But then we ran a quick experiment with what is what about we only underwrite them within a mobilizer cost five or six hundred bucks to get one of those, and then the cost comes down to about twelve uncle bucks and so now it's completely endurable again and the whole thing works. So, you know, when we look at the market and how we can play in it, we really like these little innovative solutions where what's the problem that you're facing, how do you inject something relatively cost effective that brings down the risk?

But then we ran a quick experiment with what is what about we only underwrite them within a mobilizer cost five or six hundred bucks to get one of those, and then the cost comes down to about twelve uncle bucks and so now it's completely endurable again and the whole thing works. So, you know, when we look at the market and how we can play in it, we really like these little innovative solutions where what's the problem that you're facing, how do you inject something relatively cost effective that brings down the risk?

Why the Twitter aqua the easy to steal and people became aware that they're still So we partner to deliver a car insurance product to our customers. And so can you tell us like who needs car insurance?

Why the Twitter aqua the easy to steal and people became aware that they're still So we partner to deliver a car insurance product to our customers. And so can you tell us like who needs car insurance?

I can spoil us everyone with the car would be my hope. You know, there are some people who choose not to take insurance, but as someone who sells insurance on are really advocate for them. It could really helps people out. So yeah, really everyone with the car.

I can spoil us everyone with the car would be my hope. You know, there are some people who choose not to take insurance, but as someone who sells insurance on are really advocate for them. It could really helps people out. So yeah, really everyone with the car.

Do you think it should be mandatory?

Do you think it should be mandatory?

I think it will be great if you could wave a wand and make everyone have it. But I think if making a mandatory means that there's a fine for not having it, then most of the people who don't pick it don't pick them because they can't afford it. And what you're saying is now someone who is still not going to happen sure it now gets a fine when they get caught not having it.

I think it will be great if you could wave a wand and make everyone have it. But I think if making a mandatory means that there's a fine for not having it, then most of the people who don't pick it don't pick them because they can't afford it. And what you're saying is now someone who is still not going to happen sure it now gets a fine when they get caught not having it.

I'm not sure really helps.

I'm not sure really helps.

Yeah, pair enought, so probably not really.

Yeah, pair enought, so probably not really.

Yeah, And what kind of cur insurance do people need? So what are the different kinds?

Yeah, And what kind of cur insurance do people need? So what are the different kinds?

Yeah?

Yeah?

I suppose that the two big differences you could go third party or one of those experience or comprehensive.

I suppose that the two big differences you could go third party or one of those experience or comprehensive.

And so.

And so.

I'm not a financial planner, don't have any special expertise there, but I would say that I see quite a lot of claims coming through, so I can definitely confirm that they happen.

I'm not a financial planner, don't have any special expertise there, but I would say that I see quite a lot of claims coming through, so I can definitely confirm that they happen.

And if you've chosen something.

And if you've chosen something.

Like third party fire and theft, you are exposing yourself to quite a bit of risk. About one in four, one and five who our customers will claim every year. And if you have third party only, you're unlikely to be able to claim for most of those reasons. So it definitely does happen, and it can be quite expensive, and it might happen more than you think.

Like third party fire and theft, you are exposing yourself to quite a bit of risk. About one in four, one and five who our customers will claim every year. And if you have third party only, you're unlikely to be able to claim for most of those reasons. So it definitely does happen, and it can be quite expensive, and it might happen more than you think.

What are the most common claims that come.

What are the most common claims that come.

Through some most common is about half them's big wind screens, so just so we've got all those chipsy roads stones flick up at the windscreen in the sparhalf. And for the claims by number, the next biggest is collisions and so that's by dollars, the overwhelming majority of what we pay for. And then taking on down the list, you get for small things like lost keys stolen cars. People always think that's what insurance is for them, but less than five percent of our claims up for stolen cars. And the big risk is really that you're distracted and you ran.

Through some most common is about half them's big wind screens, so just so we've got all those chipsy roads stones flick up at the windscreen in the sparhalf. And for the claims by number, the next biggest is collisions and so that's by dollars, the overwhelming majority of what we pay for. And then taking on down the list, you get for small things like lost keys stolen cars. People always think that's what insurance is for them, but less than five percent of our claims up for stolen cars. And the big risk is really that you're distracted and you ran.

To the back of someone.

To the back of someone.

So what your top three if people are looking.

So what your top three if people are looking.

To change providers or reviewing their car insurance provider, like, one of the top three things that people should consider.

To change providers or reviewing their car insurance provider, like, one of the top three things that people should consider.

I guess number one is are you with Global Shesi's.

I guess number one is are you with Global Shesi's.

The number two would be what's the price?

The number two would be what's the price?

And then probably number three would be around what's actually covered and what's the service standard? And what are you paying for. For most people car insurance is going to act exactly how they expect. But if you're using it in an unusual way. You know, if you do a lot of offer a driving wet, if you are using a few business, if you've converted your car in something, if you've modified it, it pays to really understand how that's going to be true it sure?

And then probably number three would be around what's actually covered and what's the service standard? And what are you paying for. For most people car insurance is going to act exactly how they expect. But if you're using it in an unusual way. You know, if you do a lot of offer a driving wet, if you are using a few business, if you've converted your car in something, if you've modified it, it pays to really understand how that's going to be true it sure?

And how about how to think about excess?

And how about how to think about excess?

How I think about excess is what amount of money am I comfortable paying immediately at a pinch or something goes wrong, and then pick that right them out. If you can afford to pay a little bit more, you can say by fermiums. But if you're really going to struggle to scrape together five hundred bucks in hundred bucks wherever it is, then you might.

How I think about excess is what amount of money am I comfortable paying immediately at a pinch or something goes wrong, and then pick that right them out. If you can afford to pay a little bit more, you can say by fermiums. But if you're really going to struggle to scrape together five hundred bucks in hundred bucks wherever it is, then you might.

Be better off in all the lords.

Be better off in all the lords.

And how about because I'm just thinking of the information that you put in when you are looking at getting a quote, or the information that you take before it, like that calculates the premium. One of the ones is car value or the value replacement value of the car.

And how about because I'm just thinking of the information that you put in when you are looking at getting a quote, or the information that you take before it, like that calculates the premium. One of the ones is car value or the value replacement value of the car.

Sometimes that comes almost of the.

Sometimes that comes almost of the.

Time it comes prepopulated with something you know, is there something that people should be doing or what should be in factory into that.

Time it comes prepopulated with something you know, is there something that people should be doing or what should be in factory into that.

Yeah, and maybe that's another thing that people can take as well as a market early or a greed value policy. We offer an agreed value policy just because we don't like the way that a market value policy operates.

Yeah, and maybe that's another thing that people can take as well as a market early or a greed value policy. We offer an agreed value policy just because we don't like the way that a market value policy operates.

What's the difference between the tip So.

What's the difference between the tip So.

If you write off your car with an agreed value policy, we pay out being mopped that you and should have ford. Yeah, but with the market value policy, it can be the less or what we think it's worth and then that you picked, which just becomes a little bit.

If you write off your car with an agreed value policy, we pay out being mopped that you and should have ford. Yeah, but with the market value policy, it can be the less or what we think it's worth and then that you picked, which just becomes a little bit.

So say, you know, how often should people be considering more reviewing their charage urns.

So say, you know, how often should people be considering more reviewing their charage urns.

As often as you like, because if you do cancel mid term, it sure as are obligated to give you your premium back or almost all of it.

As often as you like, because if you do cancel mid term, it sure as are obligated to give you your premium back or almost all of it.

And so there's no real.

And so there's no real.

Maximum to how regularly be shopping. But once a year sounds pretty good. You can send the annual renewal and it's a good time.

Maximum to how regularly be shopping. But once a year sounds pretty good. You can send the annual renewal and it's a good time.

To shop around.

To shop around.

It's a different for everyone, right, and you know, depending on the type of car, things like that, But there's also factors like around age and gender and how they play in and so typically if you're under twenty five and your mail, your premiums are higher.

It's a different for everyone, right, and you know, depending on the type of car, things like that, But there's also factors like around age and gender and how they play in and so typically if you're under twenty five and your mail, your premiums are higher.

Can you tell us a bit about that? And is that changing?

Can you tell us a bit about that? And is that changing?

Yeah, so I suppose the bad news is it's not changing creerly. And I suppose there's a few things that lead into it. And we do our pricing based on what are costs to actually pay for claims for those people, and so it costs a lot more to ensure you am a person because they crash more. And then there are a few factors that come into it. One is that they haven't been driving for as long. Another is that they're just younger and more prone to risky decision making. Another is that they have busy social lights and so they tend to be driving out late at night, maybe after a drink or two.

Yeah, so I suppose the bad news is it's not changing creerly. And I suppose there's a few things that lead into it. And we do our pricing based on what are costs to actually pay for claims for those people, and so it costs a lot more to ensure you am a person because they crash more. And then there are a few factors that come into it. One is that they haven't been driving for as long. Another is that they're just younger and more prone to risky decision making. Another is that they have busy social lights and so they tend to be driving out late at night, maybe after a drink or two.

Hope not too many, but all of them.

Hope not too many, but all of them.

That just increases your risk and increases the amount that we pay out. And not many of those things are really like to be a change. The one thing that could change is there are technologies out there for ensuring that we don't do some of the worst behaviors. So the worst things really is pulling out when there's not a big space, following people too close behind, and looking at your fine and you're supposed to be drunk it. And so there are technological solutions that either penalize you with your premiums if you do those things, or are conversely ruw warch you if you die, or they can prompt you when you're doing one of them and kind of intubate. So we have looked at those for kind off but the problem is the cost of the technology is quite high compared to what it saves in kinds cost. And yet also the services are quite sort of intrusive and annoying, and we just didn't think people would go for them. But then logited, as cars become more autonomous, this has to matter less or less who's in the driver's seat.

That just increases your risk and increases the amount that we pay out. And not many of those things are really like to be a change. The one thing that could change is there are technologies out there for ensuring that we don't do some of the worst behaviors. So the worst things really is pulling out when there's not a big space, following people too close behind, and looking at your fine and you're supposed to be drunk it. And so there are technological solutions that either penalize you with your premiums if you do those things, or are conversely ruw warch you if you die, or they can prompt you when you're doing one of them and kind of intubate. So we have looked at those for kind off but the problem is the cost of the technology is quite high compared to what it saves in kinds cost. And yet also the services are quite sort of intrusive and annoying, and we just didn't think people would go for them. But then logited, as cars become more autonomous, this has to matter less or less who's in the driver's seat.

So there is some good news avingually and.

So there is some good news avingually and.

Probably the final point a is younger males are a little bit worse than younger non males, but not that much worse. So everybody still in that position in the younger group.

Probably the final point a is younger males are a little bit worse than younger non males, but not that much worse. So everybody still in that position in the younger group.

So if we think about the future of insurance, like how does it need to change?

So if we think about the future of insurance, like how does it need to change?

I think there's becoming more of an awares of individual risk. And if you think back a long time, everyone paid more or less the same premium and then all the risks swept up and that's changing now. People in more earthquake prime cities are definitely seeing it. And we're talked a little about younger drivers and why they pay more premiums. And I think where insurers need to get better is displaying to people what these risk factors are. You know, we've done a lot of work to figure it all out, and we don't always share that with the consumers. I think if you think of an example where people are looking to buy a house, they're not geologists. They don't necessarily know what the what the risks are that they're facing, and we could quite readily tell them. So the government, I think the banks have a fairly good idea too, but making that or a much more visible part of the process is good. And then we talked about some of the things with driving in the ways that you can help people mitigate their risk with actuals as well. We gave people a good path to bringing down their their premiums by reducing the risks that they face. So I see that as the future of insurance. It's becoming kind of a risk partner that helps you before something happens, rather than me in the ambulance at the bottom of the cliff cleaning of the mess after it's already happened.

I think there's becoming more of an awares of individual risk. And if you think back a long time, everyone paid more or less the same premium and then all the risks swept up and that's changing now. People in more earthquake prime cities are definitely seeing it. And we're talked a little about younger drivers and why they pay more premiums. And I think where insurers need to get better is displaying to people what these risk factors are. You know, we've done a lot of work to figure it all out, and we don't always share that with the consumers. I think if you think of an example where people are looking to buy a house, they're not geologists. They don't necessarily know what the what the risks are that they're facing, and we could quite readily tell them. So the government, I think the banks have a fairly good idea too, but making that or a much more visible part of the process is good. And then we talked about some of the things with driving in the ways that you can help people mitigate their risk with actuals as well. We gave people a good path to bringing down their their premiums by reducing the risks that they face. So I see that as the future of insurance. It's becoming kind of a risk partner that helps you before something happens, rather than me in the ambulance at the bottom of the cliff cleaning of the mess after it's already happened.

Before we go.

Before we go.

We've teamed up with Cove to offer car insurance for Chasis customers with discounted prices. You can check out more on our website or get a quote within the Chasis app. Thanks again to and for joining us and talking about insurance.

We've teamed up with Cove to offer car insurance for Chasis customers with discounted prices. You can check out more on our website or get a quote within the Chasis app. Thanks again to and for joining us and talking about insurance.

Have a great week.

Have a great week.