The shake up in the local insurance market continues with IAG getting out of life insurance.
IAG has shifted 50,000 of its State Insurance policy holders to the life insurer Aon.
In a letter to State customers, IAG said the decision was difficult but customers were “in safe hands” with Aon.
“At State, we review our products from time to time to ensure we are focused on being New Zealand’s best insurer for house, contents and motor insurance,” the letter said.
“As part of this review, we have made the difficult decision to no longer offer life insurance.”
IAG said life insurance was only a small part of its business, and customers would be better supported by Aon. It gave assurances their policies would not change and would continue to be underwritten by the country’s largest life insurer Sovereign, which is owned by the international insurance group AIA.
The move is one of many made recently by IAG, owner of State and AMI, to reshape its business.
Last year it raised home insurance premiums to reflect the risk of earthquakes and floods in some areas, and has become more selective in its choosing of contents insurance customers.