On the market stability question, Faafoi argued that continued reliance on insurance levies risks compounding pressure on premiums in a way that erodes the coverage base the levy depends on. “When premiums rise, there is a real risk people reduce their cover or go without it altogether. That has broader consequences for individuals, communities, and the wider economy,” he said. As coverage rates fall, the funded pool shrinks, placing further upward pressure on premiums for those who remain insured – a cycle that undermines both FENZ’s revenue stability and insurance penetration more broadly.
