AMI Insurance

[Grumph]

Doesn't matter which insurance co in NZ folds, the govt of the time will have to bail it out or see productivity drop and the economy take a major hit.
NZ is too small to take either.
Joking about productivity ? In ChCh at present I know of businesses who have found premises, still have staff and stock or machinery BUT can't get insurance to restart.
In ChCh and possibly greater Canty - not sure how far it extends - if you wish to change insurance co, no one is accepting new business that I've found.
If I'm wrong, I'd love to know....
I can see now how ancient cities came to be abandoned - they got sick of waiting for the insurance payout and just walked away....

[Flip]

1. If AMI survives (which I doubt), they will simply buy more reinsurance (and probably increase their premiums) to protect against another disaster.

2. I have never said that AMI should be protected. It's the policyholders that need protection, as far I'm concerned AMI deserves to die.

I agree with Oscar. WTF is the Government doing bailing up a private company?

I'm sorry but all those folks who insured with AMI should be fucked. Luck the Govt is underwriting AMI. AMI went to the market and could not cover the risk they should now have to take what is coming.

I had a bike insured with AMI many years ago. Hit a big patch of fuel spilt on the Auckland motorway during a rain storm, wrote the bike off. AMI claimed that it was my fault and declined the claim. I took them to court (insurance ombudsman) and won. AMI IMHO are the biggest bunch of cunts in the insurance industry.

[trustme]

I agree with Oscar. WTF is the Government doing bailing up a private company?

I'm sorry but all those folks who insured with AMI should be fucked. Luck the Govt is underwriting AMI. AMI went to the market and could not cover the risk they should now have to take what is coming.

I had a bike insured with AMI many years ago. Hit a big patch of fuel spilt on the Auckland motorway during a rain storm, wrote the bike off. AMI claimed that it was my fault and declined the claim. I took them to court (insurance ombudsman) and won. AMI IMHO are the biggest bunch of cunts in the insurance industry.

I'm sure there is logic in there somewhere, but I'm buggered if I can find it.

[ynot slow]

If they require $500,000 and have 500,000 policy holders(according to news)wouldn't each and every policy holder be prepared to add a measly $1.00 per month for coverage,end of bail out after 1 month,let alone doing it for 3-6months to ensure all is fine.

[Latte]

If they require $500,000 and have 500,000 policy holders(according to news)wouldn't each and every policy holder be prepared to add a measly $1.00 per month for coverage,end of bail out after 1 month,let alone doing it for 3-6months to ensure all is fine.

They require between $500,000,000 and $1,000,000,000 that would be between $1000 and $2000 per person.

[The Stranger:Me]

I agree with Oscar. WTF is the Government doing bailing up a private company?

You can relax. AMI is not a private company.

[IdunBrokdItAgin]

Pull yer heads in - fuck me kiwibiker seems like the grange hill school of economics at times.

AMI had a viable re-insurance policy and was only caught out by TWO "extraordinary" eventS.

If their business model had charged more for extraordinary events you would have all called them as rip off merchants (due to higher premiums in market).

Mashman - I know that you are a sound bloke but your anti-nationalistic view is just astounding - I saw your thread prepping to accuse the government of baling out AMI shareholders, but since then you have found out they have no shareholders.

If AMI did have a parent company (most probably with shareholders) they would have bailed out AMI instead of the NZ government.

But there wasn't one and the government HAD to step in (I doubt labour would have not risked that election losing move either).

But the main reason for my post is the socialists attacking mutualism (which is my field of expertise). If you don't like mutualism then you might as well be a communist.

[mashman]

Mashman - I know that you are a sound bloke but your anti-nationalistic view is just astounding - I saw your thread prepping to accuse the government of baling out AMI shareholders, but since then you have found out they have no shareholders.

If AMI did have a parent company (most probably with shareholders) they would have bailed out AMI instead of the NZ government.

But there wasn't one and the government HAD to step in (I doubt labour would have not risked that election losing move either).

But the main reason for my post is the socialists attacking mutualism (which is my field of expertise). If you don't like mutualism then you might as well be a communist.

Very true, I have learned that AMI are Mutual and that they have policy holders and not share holders. I have generally ignored money and the trappings of through my life (shows eh ), which does leave me open to getting things wrong. I'm not too worried about that, because generally there are people that will correct/educate me. And for that I am greatful.

Anti-nationalistic eh... that's the latest label is it? will people ever stop throwing labels around just so that they can categorise someone's point of view? I don't particularly care for labels (although i have been guilty of throwing them around too), so Mutual, Private, Public etc... really doesn't mean shit to me.

It's how they conduct their business that matters to me. AMI may well be the best of the bunch, and due to "circumstances" have failed. The govt bailing them out makes no sense to me, especially as the bailout money, directly or not, goes to the same people.

I believe that it'd be cheaper to have AMI pay out what they can afford and have the govt cover the rest. Not have the money go into AMI to pay staff wages (yes job losses are hard, but people need houses and money to live with, that takes precedence imho) and not to cover "compliance" costs for take over purposes. Just pay out and then shut it down. It's a failed gamble.

[IdunBrokdItAgin]

I believe that it'd be cheaper to have AMI pay out what they can afford and have the govt cover the rest. Not have the money go into AMI to pay staff wages (yes job losses are hard, but people need houses and money to live with, that takes precedence imho) and not to cover "compliance" costs for take over purposes. Just pay out and then shut it down. It's a failed gamble.

Nope, you are discounting AMI's staff jobs. Any job lost is bad right now - whether government or private - I don't think people realise quite how bad things are in NZ right now - for those who are wondering - it was pretty much fucked after the rescission but the government tried to increase spend on infrastcutucture (like most other countires) but it will struggle to survive, and two friggin earthquakes in half a year have messed things up.

All I am saying there is a frigging huge force majour involved in NZ 's problems and people would do good to remember that.

[mashman]

Nope, you are discounting AMI's staff jobs. Any job lost is bad right now - whether government or private - I don't think people realise quite how bad things are in NZ right now - for those who are wondering - it was pretty much fucked after the rescission but the government tried to increase spend on infrastcutucture (like most other countires) but it will struggle to survive, and two friggin earthquakes in half a year have messed things up.

All I am saying there is a frigging huge force majour involved in NZ 's problems and people would do good to remember that.

Pah. That's piddly in comparison to the problems in Africa . I understand that NZ is up to it's tallest follicle, otherwise they wouldn't be borrowing $300-350 million per week to service it... This isn't my first recession . I watched my mum lose her house in the 80's, along with thousands of others as jobs went left and right. I don't take anything for granted along those lines, or at least try not to, and I don't think that many do, especially when the effects are in yer face day in day out.

When hasn't there been a force majeure? Perhaps not on as large scale, but they still exist in every day life and I think that's what people would do well to remember. Just because it isn't you, doesn't mean it isn't happening, but that force majeure is called ripping people off for financial gain, but that's life Hence let AMI die, pay those who need it... get a job like everyone else has to that's been made unemployed in Chch. C'est la vie.

[Grumph]

I think you need to come to ChCh and have your face rubbed in it......

[ynot slow]

They require between $500,000,000 and $1,000,000,000 that would be between $1000 and $2000 per person.

Sorry heard the report wrong with my arithmatic.$100 per month over a year per policy holder,sounds like we'll all be paying this much,but next quake maybe in any part of kiwiland,and I think all of us would be pissed if the insurance companies went broke and couldn't pay,hell people are still waiting for assessors.

[oldrider]

They own 225,000 domestic policies in chch itself, 10% of that is 22,500, so if they've used two lots of $600m re insurance, thats's an average of ~$53,000 per claim. Not unrealistic considering the damage.

Plus they insure some commercial stuff too.. i'd say the Govt did a very nice thing, but AMI shouln't have been charging ridiculously low premiums IMHO cos then they wouldn't be stuck like this.

I guess it's unfortunate that ithad to hit where they have the biggest market share

EDIT: Shit forgot about EQC contribution. Yea actually where the hell did their money go! The Govt chucks in the first $100,000 of house claims, then AMI can't pick up the rest so the govt steps in like a rich kids dad when the kids can't control their spending!

"AMI" stadium .... what did that cost them?

Now no Rugby world cup in Christchurch ..... what did that cost them?