The Commission. Article: IAG granted clearance to acquire part of AMI, retrieved 15 April 2012 from http://www.comcom.govt.nz/media-releases/detail/2012/iag-granted-clearance-to-acquire-part-of-ami
Since 2010 Canterbury earthquake and 2011, AMI Insurance has significantly suffered losses and have requested for support from the New Zealand Government in order to survive. In the aftermath it was in the company’s best interest that they seek an outside investor. AMI lodged an application to the Commission for a proposed merger with IAG (Insurance Australia Group).
After consideration, The Commission was satisfied with the proposal and granted clearance. With the merger, there will not be any advances made in the market that would lessen competition for house, contents and motor vehicle insurance purposes. There will still be sufficient competition in the market that will have an impact on quotes and prices.
The Insurance industry in New Zealand is more of an oligopoly structure.