NZI has recently developed a well-defined risk management programme that to date no other company had copied.

Over the last week we have been in receipt of a new policy by Lumley Insurance that cites ‘the cost of vehicle theft and claims ratios on at risk vehicles as being unprecedented’.

More recently NZI have revised their ‘at risk’ criteria to a ‘top 5’, for those who are not fully aware of that list, we have reprinted this below.

NZI TOP 5 At Risk.

1.    V8 Non European

2.    Turbocharged Petrol

3.    Supercharged Petrol

4.    ‘SPORTS’ (all variants)

5.    AWD (All Wheel drive) Petrol. (not RV/SUV)

The Lumley TOP 5 list reads a little differently, however it is not dissimilar to the original NZI Top 10 list.

LUMLEY At Risk.

·       Holden HSV Senator, Club Sport, SV and SS

·       Ford Falcon XR6 & XR8 models.

·       Subaru B4 and Legacy GT, RS, RX, RSB GTB and ALL Turbo Models.

·       Subaru Imprezza, WRX, RXI, STI, WRX GT

·       Mitsubishi Evolution (EVO) models.

From this point on the acceptance differs, NZI preferring to require different levels of protection for vehicles under $10,000 and those over, the latter needing both a 3749 and a 4601 system. Fitting the ‘specified’ system provides the owner with No Excess for theft or break-in and no loss of their No Claims benefits.

With Lumley they have a blanket approach by applying a sliding scale of excess deductibles that top out at 10% of the vehicles insured value once the car is over 50K. The fitting of an AS/NZS 4601:1999 Certified system returns the policy to ‘standard terms’. In the case of Holden HSV vehicles valued over 50K a minimum of a GPS system will be required.

With more and more new cars now equipped with Factory In Key microchips, NZI also recognise factory Immobilisers as being in accordance with AS/NZS 4601:1999.  The EXCEPTION to this rule is however the Holden Commodore models and simply acknowledges the fact that ‘professional’ thieves have placed the V8 versions at the ‘top of their wish list’. Technologies apparently being employed continue to make Commodores a priority risk.

 INSURANCE UNDERWRITING CRITERIA

The new VXII Commodores are now equipped across the range with Factory Security Alarms. In some instances factory security is basic while in others they are far more impressive than the best aftermarket offerings. NZI acknowledging that a factory alarm is consistent with their requirements.

For NZI an acceptable alarm is either OEM or an AS/NZS 3749.1-1997 certified system that has been fitted locally. In instances where the vehicle is deemed to be ‘At Risk’ the alarm on its own is not sufficient for acceptance, a 4601 immobiliser being additionally required.

The New VX Series II Commodores with alarms for an NZI client to obtain the ‘full value’ of ‘NO Excess’ for theft and damage and protection of their No Claims Benefits they will need a 4601:1999 certified Immobiliser, the D2200 being the obvious choice. NZI may require the factory alarm to be upgraded in higher risk and HSV applications and in some cases the underwriter may decide not to zero-rate the excess.

The HSV option of ESS is further evidence that the there’s a real concern in the ongoing theft of V8 Commodores. The D2200 is in effect identical and more advanced than the earlier ISS (not NZI acceptable simply because it can be permanently disabled) and offers a cost effective and secure solution to non-ISS equipped V8, HSV, Senator and SS models.

Manufacturers often argue new technologies introduced by them as being ‘reason enough’ for Insurance Companies to offer instant concessions. The Insurance Industry is however not so agile and nor should it be. Change is a process that emerges over time. An underwriter will assess the ‘results’ over a measured period and then evaluate the profit loss ratios. The Commodore pre VX II already has a high loss ratio, there is no doubt that both NZI and Lumley will continue to ‘monitor’ trends over the next 12 months and then act accordingly.

The ‘Commodore brand’ includes VB – VXII there is NO WAY that the new VXII is going to ‘impact’ on the overall loss ratios. Inevitably in the future there may be some relaxation of NEW verses USED, specific from a model onwards. In the meantime fitting a D2200 to A NEW Commodore reduces the likelihood of it being stolen and with the factory alarm (or an AS/NZS3749.1-1997 Certified aftermarket one), this provides an NZI customer with provisions of No theft excess and protection of their No Claims bonuses.

Subarus have the unenviable reputation for being a top target for theft. Both NZI and Lumley have specifically have made provision within their risk acceptance criteria that includes variations of the Subaru range.

NZI cover this with their emphasis on Turbocharged Petrol and All Wheel drive, while Lumley have identified more with the ‘Turbo’ brigade. It is however evident that even the Non Turbo models are being subject to theft and damage, validating the decision by NZI to cover this by specifying the All Wheel Drive category.

Many of the NZ new models now have the IN KEY microchip Immobiliser which from the NZI perspective is considered to be consistent with AS/NZS 4601:1999 Immobiliser requirements. 

NZ New Subaru locally fitted 3749.1-1997 certified alarms still then require additional installation of a 4601 Certified Immobiliser or the IN KEY microchip, in order to get the full benefit of No theft or damage excess and protection of No Claims Benefits. Without the 4601 immobiliser the customer faces up to an additional $2000 excess and may be in some cases ‘declined’ for insurance.

Where a ‘NZ new’ Impreza (including WRX), Legacy or Forrester has the In-key microchip (Year models 1998 on) with NZI this provides for ‘Standard terms’ of cover, the no excess being offered only when the car is additionally equipped with an AS/NZS 3749.1-1997 Security Alarm as well. At Resonic this could be the D3800 (using our remotes) or the D4800 (keeping the factory remotes), both being certified to 3749.1-1997.

Currently however, all NEW Legacy Turbos and all NEW Impreza STI models exported to NZ do not have the IN KEY microchip simply because they were manufactured as Japanese Domestic models. This is true for ALL Used Japanese Imports and based upon the high numbers being landed, therein is the whole problem. However with both models now destined to sell in Australia in 2002, it is very possible that the In-key microchip may appear in subsequent Turbo Legacy and STI models that arrive here  next year?

Recapping:

·       All Japanese used Import Subaru Turbo and Non-turbo have no factory Immobilisation at all.

·       All New Turbo Legacy and STI Impreza models to date do NOT have the IN KEY microchip and therefore require a 4601 Immobiliser to obtain standard terms of cover.

·       The fitting of a system that is 4601 will provide for Standard terms of acceptance with both NZI and Lumley.

·       The D3800 by being certified to both standards then becomes the obvious choice for all models, both under and over 10K.

The reality is that Subaru have gained a bad reputation for being stolen. A customer needs to be reassured at the point of sale that the fitting of an AS/NZS 4601 Immobiliser will secure their car and maintain standard terms of cover. NZI now go so far as to say that since their adoption of Immobilisers (two years) that are consistent with AS/NZS 4601, they have not had a claim for the theft of a vehicle where it has been stolen under its own motive power. To date, the few vehicles that were stolen (and recovered) had either clear signs of towing, complicity between parties or ‘other’ elements that indicated the Immobilisers had in fact proved to be effective and reliable deterrents.

This has already been covered in respect to Holden Commodores, however the V8 Fords and ‘others’ now need to be looked at.

Falcons (all variants) with V8 engines are ALL at Risk. The two button remote ‘Smartlock’ systems offer no effective security, being fundamentally a ‘remote central locking’ only. Falcons with the NEW 4 button remote do however incorporate the PATS security, that being Passive Anti Theft System. PATS utilises encrypted microchip recognition and are considered to be in line with AS/NZS 4601 standards. Therefore PATS equipped Fords will have ‘standard terms’ of acceptance. The addition of a Security system to AS/NZS 3749.1-1997 provides for No excess for theft or damage and No loss of their No Claims benefits. For the PATS equipped Fords we recommend and fit the D4800, thereby allowing the customer to retain their factory remotes.

Fords with the earlier two button remote and V8 power need to fit a system or systems that have met both standards, AS/NZS 4601 and 3749.1-1997. Once again, the D3800 achieves this in a single package. Although it replaces the Ford remote, we can retain the boot release and central locking functions with the Dynatron remote.

Non-European is essentially targeting American vehicles, utilities being an obvious concern and also the more obvious V8 muscle cars. The Japanese V8 models Toyota, Lexus and Nissan are few and far between however they do represent a prevailing ‘risk’ element that requires additional Immobilisation. Jeep models that have been sold NZ new and have the radio remote retain an effective Immobiliser, Jeep imports without remotes do not.

Apart from Subaru, there are a large number of vehicles that are Turbocharged and come in either two or All wheel drive. Mitsubishi is a prominent brand, although so to is Toyota and to a lesser extent Nissan. If its got a turbocharger NZI has deemed it to be ‘A high Risk’. Lumley have defined the EVOlution Lancers as their priority and for that the 4601 Immobiliser is required merely for acceptance and standard terms.

Notable in this group is the Commodore Supercharged, both in mainstream models and HSV, the latter being called XU6. Less obvious are the MR2 Toyota variants and some exotic imports ex Japan that are once again bereft of any Immobilisation.

This one is a bit more complicated, however those in the motor trade appreciate that a badge tells a thousand stories. The sports performance category nets the XR Fords that are not V8 powered and all the 4 cylinder versions as well. NZI are specifically targeting the NON Turbo Non All Wheel Drive brigade where the vehicle has serious potential as both a go fast and ‘lets steal it’ proposition. The Primera GT is a good example of what is a genuine 150 BHP car with serious performance potential and so represents an example of the criteria. Limited edition models including Japanese Import models that are Euro’s (IE BMW, Opel etc) also fit into these criteria. S, SSS , GT-R, GT, GTI, GTI-R, GTO, SRI, STI, VTIR, MIVEV, VVTI, Type R, RS are just some of the badges. last but not least, include sedan, hatch, wagon, utility and coupe in this category.

Deliberately distinct from Four Wheel Drive this category identifies with the sedan, hatch or even coupe that without the turbo or supercharger still remains at risk simply because it is different. The Subaru Legacy and Impreza models without Turbos obviously fit into this category as do many Toyota, Mazda, Nissan and Mitsubishi models. The attraction for theft is focussed on the perceived dual character and the attraction of an All Wheel Drive vehicle. To some extent the easy interchangeability of some components with their more expensive Turbo cousins make them an obvious target as well.

This category once again targets the more evident Japanese Imports, as most NZ new models, particularly European models already have Immobilisers fitted as standard.

The SUV or RV, Sports Utility vehicle or recreational vehicle specifically draws the line that by definition recognises an OFF road vehicle as being exempt as apposed to a SOFT road vehicle that is not.

Some will argue that a dual range Legacy Outback covers both camps, however without entering into a debate on gearing ratios and entry and exit departure angles, the Legacy per se is a SOFT road vehicle, as is the Forrester. To put the issue into its correct perspective, those who would beg to disagree please deposit 20 million into a fund to underwrite the losses associated with Legacies then I am sure that the Insurance Companies might be prepared to discuss the point, until then it’s their call to make as they’re paying the bills. Funnily enough, the Daihatsu Terros without any dual range is considered an OFF road, simply because it ‘looks the part’.

Burglary, vandalism and vehicle related crime committed against ‘ordinary New Zealanders’ resulted in Insurance claims of nearly half a Billion dollars over the last 2 years.

Over the last two years claims of nearly $20 million dollars a month have been processed for Burglary, vandalism and theft of motor vehicles.

Claims for private vehicles, stolen or vandalised over the last two years amounted to $163 million dollars. Put more powerfully, that is $223,287.67 dollars every day being paid out without fail. The cost of claims has increased by 3.5% over the last 12 months.

These figures were published by The NZ Insurance Council in September 2001, outlining a decline overall in the number of theft, burglary and vandalism claims, but a significant increase in the value of the claims themselves. These figures also do not report the incidence of unreported crime, where the excess is more than the claim, forcing the owner to pay out of their own pocket. Last year alone, Insurance Council members paid out over a billion dollars to assist new Zealanders rebuild their lives after suffering losses to their property. How BIG is the problem? You tell me!