The life insurance industry in New Zealand has maintained a steady growth trend in recent years, with an average annual growth rate of 2% to 5% since 2015. According to the data from the New Zealand Financial Services Commission (FSC), by 2025, there will be 4.15 million life insurance policies across the country, covering approximately 5.46 million people, and the total premium income of the industry will reach 3.24 billion New Zealand dollars (approximately 1.86 billion US dollars). Seasonal factors have had a less significant impact on the business since 2021, indicating that the market is becoming more mature.
The latest report from FSC shows that as of December 31, 2024, the amount of life insurance claims reached its highest level since 2020. The quarterly payout exceeded 350 million New Zealand dollars, showing a significant recovery from the low point in 2022. Death insurance due to accidents remains the most dominant type of insurance, but the insurance coverage for trauma insurance and group life insurance has also increased significantly.
In terms of the composition of the policyholders, 60% are male, 30% are female, and 10% have not specified their gender. The middle-aged group aged 46 to 65 is the main source of premiums, contributing over 50% of the premium income, indicating a high demand for insurance among this age group.
Meanwhile, Suncorp Group announced that it would sell its New Zealand life insurance business, Asteron Life, to Resolution Life NOHC for 410 million New Zealand dollars, marking further consolidation in the country’s insurance market.
The Insurance Commission of New Zealand (ICNZ) has called on the government to revise the Resource Management Act (RMA) in order to restrict development in high-risk areas, thereby reducing the threat of natural disasters to communities. The government plans to require local councils to implement relevant policies during the second phase of the RMA reform, with a focus on formulating a national natural disaster management strategy.
New Zealand is facing severe risks of natural disasters. A report by the Climate Change Commission indicates that approximately 750,000 people and 461,000 buildings are threatened by coastal or inland flooding, with potential losses amounting to several billion New Zealand dollars. This trend may further drive up insurance demand, especially for insurance products related to climate risks.
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