What’s happening to my policy?
Co-op Insurance NZ has entered into an agreement to sell its insurance business to Provident Insurance, in particular the transfer of its insurance portfolio of (Carminder branded motor vehicle insurance, Loanminder branded Consumer Credit Insurance, Provident Insurance branded Motor Vehicle Insurance and Provident Insurance branded Luxury Motor Vehicle Insurance). Funeral Plan will remain with Co-op Insurance NZ for the time being.
Your insurance policy will continue to provide cover on the same terms and there will be no change to your rights and obligations under your policy. For example, if your policy includes Roadside Assist, this cover will continue on the same terms.
Why is this happening?
The Carminder and Loanminder products are complementary to the products already sold by Provident Insurance. Provident Insurance existing products are Mechanical Breakdown Insurance, Guaranteed Asset Protection, Credit Contract Indemnity and Motor Vehicle Insurance.
Additional benefits are therefore expected to arise for Provident Insurance from utilising Co-op Insurance NZ’s network. Co-op Insurance NZ and Provident Insurance expect that you, as a valued customer, will continue to receive excellent service and, in the longer term, be offered a broader range of policies.
What policies are being transferred?
Policies being transferred include Carminder branded motor vehicle insurance, Loanminder branded Consumer Credit Insurance, Provident Insurance branded Motor Vehicle Insurance and the Provident Insurance branded Luxury Motor Vehicle Insurance policies.
When will this happen?
31 March 2018, but is subject to Reserve Bank of New Zealand (RBNZ) approval
Who is Provident Insurance?
Provident is a specialist automotive and credit related insurer that started business in 2012 and is 100% New Zealand owned. It is a:
- member of the Insurance Council of New Zealand
- signatory to the Fair Insurance Code
- signatory to the Responsible Credit-Related Insurance Code.
The Insurance (Prudential Supervision) Act 2010 requires all licensed insurers to have a current Financial Strength Rating, given by an approved rating entity. Provident Insurance has been issued a Financial Strength Rating of B++ (Good) with a stable outlook by A.M. Best which was reaffirmed in July 2017. The Financial Strength Rating scale is shown below.
A.M. Best Financial Strength rating scale
|E||(Under regulatory supervision)|
Further information about Provident Insurance is available on its website www.providentinsurance.co.nz.
I have recently submitted a claim on my insurance policy. What effect will this transfer have on my claim?
All claims made up to the date of the transfer, 31 March 2018, will be managed and overseen by Co-op Insurance NZ. Contact details for policyholders to get in touch with Co-op Insurance NZ will remain the same and staffing continuity arrangements have been made. This means there is little change for you during the claim process.
What effect will this transfer have if I need to make a claim in the future?
Your policy will continue to provide insurance cover on the same terms and there will not be any changes to your contractual rights and obligations. All contact information (i.e. phone numbers and email addresses) that policyholders usually use to contact the insurer will remain the same.
Does this mean I may need to pay an additional premium to keep my cover?
Your existing premium and payment commitments will not change. There is no need to pay additional premium.
Will I receive new policy documentation?
No, your existing policy and its terms will continue to be honoured after the transfer has been completed.
Do I need to do anything?
No, but we value your feedback and any comments you may have.
How do I provide feedback?
Please email firstname.lastname@example.org to provide your feedback before 5pm on Friday 9 March 2018.