AMI Insurance

[YellowDog]

I moved my car policy away from AMI as I found them (the operator) quite stupid whilst I was trying to get a motorcycle quote.

[Tunahunter]

Seems like a sensible move by the government to me.

I agree - with such a market dominance in one town, an big earthquake would test any company's cash position. I have found AMI to be a great company in my dealings with them around car insurance.

[marie_speeds]

I have read what Oscar wrote and tried to absorb... but am still confused????
Here's why....in the 5 years in the lead up to the Sept 2010 EQ say the company only had minor day to day claims surely they would've had a kitty. After Sept 2010 a whole heap of claims came in for damage, which the EQC would've paid out on first, and if damage was under $100k then theoretically insurance companies would've paid zilch in many cases. Many of the severely damaged properties were not actually addressed or in the process of being repaired by the insurance companies when the Feb EQ hit i.e at that point in time they still had not paid out anything for Sept. So I really don't understand why they are pleading poverty...

Must be me must be too tired to think this stuff through.....Roll on the weekend...

[avgas]

Insurers and Banks are guaranteed not to have money these days.
Its all virtual for them.

Pity for us that our payments are not.

[Bald Eagle]

I have read what Oscar wrote and tried to absorb... but am still confused????
Here's why....in the 5 years in the lead up to the Sept 2010 EQ say the company only had minor day to day claims surely they would've had a kitty. After Sept 2010 a whole heap of claims came in for damage, which the EQC would've paid out on first, and if damage was under $100k then theoretically insurance companies would've paid zilch in many cases. Many of the severely damaged properties were not actually addressed or in the process of being repaired by the insurance companies when the Feb EQ hit i.e at that point in time they still had not paid out anything for Sept. So I really don't understand why they are pleading poverty...

Must be me must be too tired to think this stuff through.....Roll on the weekend...

They are pleading poverty so they can make sure they pay as little as possible, it's the business way.

[Oscar]

They are pleading poverty so they can make sure they pay as little as possible, it's the business way.

Nothing of the sort.
It's a mutual company - it belongs to its policyholders.
Besides, the minute they draw on the Govt. facility, it becomes a state owned entity.

[avgas]

I have read what Oscar wrote and tried to absorb... but am still confused????
Here's why....in the 5 years in the lead up to the Sept 2010 EQ say the company only had minor day to day claims surely they would've had a kitty. After Sept 2010 a whole heap of claims came in for damage, which the EQC would've paid out on first, and if damage was under $100k then theoretically insurance companies would've paid zilch in many cases. Many of the severely damaged properties were not actually addressed or in the process of being repaired by the insurance companies when the Feb EQ hit i.e at that point in time they still had not paid out anything for Sept. So I really don't understand why they are pleading poverty...

Must be me must be too tired to think this stuff through.....Roll on the weekend...

Will break it down for you.
You say to insurer1:
"My house is worth 100K, I pay you 1K to insure it, so when it fail you pay 100K"
pay them 1K. Say they do this for 10 houses = 10K

insurer1 says to insurer2:
"These houses worth 1M, I pay you 9K to insure them, so when it fails you pay 1M"

Earthquake
insurer2 says "no money now come back later"
insurer1 says "all I can pay is 1K as that is all I have"
You lose. You invested in a joint idea. Half insurer1 half insurer2......

[avgas]

Nothing of the sort.
It's a mutual company - it belongs to its policyholders.
Besides, the minute they draw on the Govt. facility, it becomes a state owned entity.

We used to have one of those....

[Oscar]

I have read what Oscar wrote and tried to absorb... but am still confused????
Here's why....in the 5 years in the lead up to the Sept 2010 EQ say the company only had minor day to day claims surely they would've had a kitty. After Sept 2010 a whole heap of claims came in for damage, which the EQC would've paid out on first, and if damage was under $100k then theoretically insurance companies would've paid zilch in many cases. Many of the severely damaged properties were not actually addressed or in the process of being repaired by the insurance companies when the Feb EQ hit i.e at that point in time they still had not paid out anything for Sept. So I really don't understand why they are pleading poverty...

Must be me must be too tired to think this stuff through.....Roll on the weekend...

A mutual insurer like AMI is probably aiming to pay out about 70% of each years ‎premium in “ordinary” claims, has an expense ratio of about 20-25%, and profits of 5-‎‎10% (plus earning another 5% on premiums invested). ‎

One of the expense items would be reinsurance catastrophe cover, to pay for the ‎extra-ordinary claims (like earthquakes). In simple terms AMI did not buy enough ‎reinsurance. ‎

[marie_speeds]

Thanks oscar for clarifying. Now all i can say is the govt is bailing out a lemon with tax payer money. After today AMI will have no policy holders left as everyone in the rest of the country will jump from the sinking ship and find new insurers.

[Banditbandit]

And who is it who believes that private enterprise can "do it better"?

Another case of "Yeah right" ..

[Oakie]

I've been with AMI forever and I'll stay with them. Been a great company to deal with all these years. I wish them a full recovery.

[Latte]

I've been with AMI forever and I'll stay with them. Been a great company to deal with all these years. I wish them a full recovery.

Yeah they've been pretty good to us, and rates are good (guess not for long). Although we'll stay with them even if it increases (within reason).

[Oakie]

who owns AMI? and how much are they supposed to have in reserve to be able to cover the potential debt they have?

We, the policy holders own it as it is a mutual organisation. No shareholders.

As for reserves, God knows. I think their priofit last year was 30 million so even if they stashed away their entire profits for 10 years that wouldn't go far down here.

[yachtie10]

fuckin trific... ha ha haaaaaaaaaaaaa who owns AMI? and how much are they supposed to have in reserve to be able to cover the potential debt they have?

bah bah black sheep

did you actually read it?
I see that they think they have enough reserves to cover christchurch but may not have the cashflow to cover other claims.
They cover 30% of christchurches residential claims
how much reserves do you think they should have
How much reinsurance is more the point

And yes I as a policy holder own part of the company. Which worries me if my home burnt down now would my claim be honoured

I wonder what your opinion of ACCs future funding was?