insurance tagged posts

New Zealanders Are Inadequately Insured

February 18, 2013 New Zealand Finance

Insurance risksNew Zealanders need to inspect their current insurance policies and ensure that their chosen cover is adequate for them.

On February 18th the New Zealand Financial Services Council released a new study on the levels of insurance cover taken out by New Zealanders, claiming that many individuals are under-insured and some families are insured but are using a poorly chosen policy.

Overall, the study found that New Zealanders are under-insured by a total of NZD 650 billion, exposing themselves and their families to significant financial risks and hardships.

Despite the level of under-insurance, the conclusion drawn in the study is that under-insurance in New Zealand has not yet reached a crisis level, but greater consideration should be given by New Zealanders to the level and type of insuranc...

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IRD Targets Insurance Industry Tax

January 17, 2009 New Zealand Taxation  No comments

The Inland Revenue Department (IRD) is targeting insurance advisors who are reportedly not paying enough Goods and Service tax (GST).

According to the IRD there are currently some insurance agents paying too little GST. The problem arises in the instance of insurance agents earning more than $40,000 from the sale of health and disability and income protection insurance.

Currently, commission earned on life insurance is exempt from tax, other types of insurance are not. Seemingly guilty parties have pleaded ignorance to this fact as an excuse. This is yet to become a large problem, with only small numbers currently participating in such activity.

While the IRD has raised this issue with the Institute of Financial Advisors and the Professional Advisors’ Association already, it aims to quell...

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