Council insurance premiums increase
Council today approved an increase in budget of up to $212,466 for the 2022/23 financial year to accommodate an increase in insurance costs.
Council received a report that outlined how the 2022 insurance renewal had coincided with Council’s revaluations for the three waters and property assets, which saw a significant uplift in asset values. The increases in asset values, along with the cost of recovery for a number of significant weather events, has resulted in a substantial increase in the material damage and business interruption premium.
Several factors have driven the overall increase in the material damage premium, including the addition of new assets constructed since the previous three waters valuation in 2020 needing to be insured, addition of vested assets from new developments and increased construction/replacement costs.
Other areas of premium increase of note include commercial motor vehicle cover, professional indemnity cover and cyber risk insurance.
Insurance premiums are currently rate funded. The increase in budget through the reforecast process will impact rates by an increase of between 0.5 and 0.75 per cent.
