Insurance Company's Stupidity

The Chief Executive Officer NZ Insurance Council 22/12/03 Dear Sir,      In the last few years I have been totally disgusted with the actions of NZ insurance companies.  Never in my life have I experienced such incompetent arrogance.  Need I remind you that greed and stupidity have caused financial trouble for AMP and Tower?  More than thirty years ago I dumped both because they failed to realise that if they ignored the needs of the customer, the customer would seek alternative accommodation.  Be it the local shop or international corporation, this facet of business life is universal.      In today's economy it's disturbing to see the remaining companies couldn't give a 'shit' about their customers.  In fact things have deteriorated to such an extend that they no longer serve the needs of New Zealanders.       In the last 30 years NZ wages have not kept up with the cost of living and most household budgets lack the flexibility to cater for the insurance company's outdated demands regarding direct debits. Apparently only payments on four days a month are accepted.  I was informed by my insurance agent that it was the banking system's fault.  Upon making enquiries, I find this to be untrue.      It would be commonsense to for the customer to organise an automatic payment on pay day.  This would ensure the premiums are paid and everybody is happy.  I realise that insurance companies don't have such an administration system in place but that's not the customer's fault.  Their inept management policies are their problem, not the customer's.  It's about time they realised just who pays them multi millions on a regular basis and organise themselves for today's economy.       The Fair Go TV programme indicates that they frequently refuse to honour their financial obligations and rely upon the fact that the small customer lacks the funds to instigate suitable legal proceedings.  But if a premium is inadvertently missed they squeal like stuck pigs.  Yet on many occasions the situation is nobody's fault but their own.      After making enquiries I find that there area number of offshore insurance companies that don't own NZ outlets and are willing to insure New Zealanders using automatic payments.  With the banking system able to electronically transfer funds around the world in micro seconds.  Why should we bother ourselves with the mindless arrogance of local companies?  We would also save millions in GST (grand sale theft) taxation.      It's about time NZ insurance companies got their act together and treated their customers with respect.  Not just as an endless source of cheap finance to be invested in offshore ventures they don't understand.  Their loses are caused by different cultures having different customs.      If they continue to bury their heads in the sand and ignore reality, I wouldn't mind betting that in 20 years time domestic insurance companies will no longer exist.  NZ owned or otherwise.  Think of the out flow of domestic funds and the resulting unemployment.  And it would be pointless for the companies blaming the customer for their own stupidity.       You can bet your boots this article will be ignored by the insurance industry.  In time they will go broke. Arrogance always costs money.