Marae Insurance

We consulted with iwi around the country to identify three key issues with traditional marae insurance:

1. Affordability
   It has been too expensive for many marae.
2. Relevance
   The majority of marae are insured under standard insurance policies not specifically designed to provide cover for the unique risks of a marae.
3. Return on capital
   Collectively, marae within New Zealand spend millions of dollars in insurance premiums. It is estimated that the loss histories have been favourable for insurers, but marae have not seen the benefits.

A better solution for marae insurance

In conjunction with one of the world’s largest insurers, Willis Towers Watson has developed a two-stage solution to address the issues with marae insurance.

While there has been a lot of talk over the years in the industry about better insurance, our solution is already working and can now be made available to a wider group of iwi.

Willis Towers Watson offers market-leading transparency with no hidden fees for our clients. We have been operating in New Zealand since 1965.

Stage 1: Making marae insurance more affordable and relevant

Insurers are driven by premium volume. Collectively iwi spend millions of dollars a year on marae insurance, but:

• The vast majority are buying individually,
• They get off the shelf wordings, and
• Are treated as individual buyers (even though many are with the same insurers/brokers).

Individually, many insurers take a conservative approach to insuring marae. The Willis Towers Watson solution is to:

1. Consolidate with a proven insurer
2. Offer a unique wording specifically designed for marae, after consultation with iwi
3. Provide loss prevention guidelines developed by our loss control engineers.

This will give better cover, as well as volume discounts to make marae insurance more affordable. Loss control guidelines will also help to reduce and mitigate losses, improving the overall loss history.

Stage 2: Getting a better return on capital – long-term benefits

Once a large premium volume has been established with an insurer (and a consolidated loss history), it creates opportunities to consider alternative benefits such as:

• Profit share arrangements
• Internships
• Sponsorship.

Also, once a consolidated claims history is established, there is an opportunity to consider various self-insurance options, including:

• Higher deductibles
• Forming an insurance company solely for insuring marae, sharing the risk between iwi and insurers.

Why this solution works

The important differences between our solution and others talked about are:

1. This is already established and working
2. An insurer is already established and engaged in the development process
3. Willis Towers Watson is the leading broker in establishing self-insurance options and in producing feasibility studies to assist decision making
4. Willis Towers Watson will provide a dedicated team with specialist expertise in both coverage options and claims handling.