Cunliffe plans a ‘Kiwi’ insurer

DAVID CUNLIFFE will today announce Labour’s plans to launch a new state-owned insurance company to compete with the predominantly foreign-owned insurers.

It is expected to operate out of Kiwibank branches and is likely to have a name that positions it as part of the ‘‘Kiwi’’ branded Labour initiatives which include KiwiSaver.

It would give the state-owned NZ Post subsidiary another product range to underpin its existing store network as the post side of its business declined.

NZ Post yesterday said that up to 2000 jobs would go in the next four years as the company faced a big dip in mail volumes.

Kiwibank already has a small Kiwi Insurance subsidiary mainly focused on life and disability insurance as part of its mortgage lending business.

But the Labour insurance plan, which will be the flagship new policy in Mr Cunliffe’s first conference speech as leader today, is likely to offer house, contents and car insurance, as well as products for small businesses.

A spokeswoman for Mr Cunliffe would not confirm details of the plan, but did say that he would make an announcement ‘‘around the insurance sector’’ stemming from his concerns about it being predominantly foreign-owned and at the unease many felt at not getting the service they should.

Labour is also likely to use the announcement to contrast its plan to expand state business, building on the popular Kiwibank model, with National’s asset sales programme.

Labour MPs and delegates will later today head to Christchurch East, where post-earthquake insurance problems are still a hot button issue.

They will do a round of doorknocking to support its candidate Poto Williams in the upcoming byelection

Meanwhile, Labour delegates have moved to dilute the party’s 2011 policy to gradually increase the state pension age to 67.

The new wording, recommended by affiliated unions, commits the party only to consider a rise in the eligibility age as part of ensuring the universal superannuation scheme remains sustainable.

It will now go to the full conference for approval today, but finance spokesman David Parker downplayed its significance, saying the platform was a high level document and the policy would not be known until closer to the 2014 election.

He said ‘‘you will have to wait until we release our manifesto’’ when asked if a rise to 67, or some other age, would be part of Labour’s manifesto.

Key v Cunliffe Insight C3