A larger number of New Zealanders now hold personal insurance cover, new data shows.
The Financial Services Council (FSC) regularly provides update snapshots of the number of active policies held by people across the country.
Its data for the March quarter shows there were 4.2 million life covers in place, up from 4.1 million a year earlier.
A growing population may be behind some of that increase – New Zealand has seen record migration over the past year.
The population grew 2.5%, or 130,700 people between March 2023 and March 2024.
Accidental death and term life cover remained the most commonly held product, with $1.569 billion in annual premium income. That was followed by trauma cover, with $625 million, and income protection, with $510m.
The amount of premiums paid on accidental death and term cover, and income protection cover, lifted year-on-year but trauma cover premiums fell. Premiums for group cover also rose. There was $41m being paid in whole life cover.
Claims totals have been steady at just over $300m each quarter for the past year.
The FSC has been vocal about New Zealanders overall having a lack of insurance.
One survey it conducted showed that 70% of New Zealanders are underinsured.
The survey of more than 2000 New Zealanders found about 70% of New Zealanders were underinsured.
Only 11% of respondents reported having income protection insurance, 14% total and permanent disability insurance, and 18% cover for trauma or critical illness.
The figures also showed that 90% would be financially affected if they lost their jobs and 80% would struggle to support their families if they were in an accident that led to a permanent disability.
Eight out of 10 would also face trouble if they experienced trauma or a critical illness that meant they were unable earn a living or look after their families.
Ryan Bessemer, chief executive of Trustees Executors, a sponsor for the FSC research, said at the time that it was something that deserved attention.
“The consequences of not having insurance should the worst happen can create a heavy burden on whānau should they have to come up with costs for funerals, medical bills, mortgage repayments and so on,” he said.
“There’s a balance to get right, and Kiwi families deserve to both be able to protect themselves and their families while also being able to get by.”
Deloitte has also highlighted the potential for underinsurance to push families into poverty if they encounter a financial shock.
Earlier research from Massey University senior lecturer Michael Naylor said that many New Zealanders were likely not giving much thought to insurance because they did not like to contemplate adverse events and what effect they would have on their finances.
That could be particularly the case for people who did not have children, he said.
“Childless singles or couples do not seem to contemplate their vulnerability to medium term or permanent disability, possibly because of a lack of trigger events.”
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