More and more New Zealanders are choosing to take out health insurance, with 1.5 million Kiwis holding some form of cover. So, what’s driving the increase? There seem to be a few factors at play.
Employer cover
A growing number of people are covered by health insurance because it comes with their jobs. More and more workplaces are introducing health cover as a perk for staff and that is showing through in strong growth in the number of working-age people with health cover.
Health insurance is often seen as a relatively inexpensive but highly valued incentive, which helps retain existing staff and entice new talent.
This trend is particularly evident during periods when the labour market is strong, the number of working New Zealanders increasing, and unemployment numbers are low, with employers focusing on what they can do to make their workplace more appealing.
Increasing awareness
Here in New Zealand, we’re lucky enough to be able to rely on a public healthcare system for emergencies, and ACC for accident-related injuries.
But as good as this system is, especially compared to many other countries, when it comes to non-urgent, non-accidental care, it’s important to have options.
According to the Health Funds Association, which is now part of the Financial Services Council, delays for people seeking treatment in the public system highlight the difference that health insurance can make.
Having health cover in place means potentially getting a better level of service through faster access to treatment, and more options when it comes to treatments or medications not funded in the public system.
Older people holding on to their insurance
The Health Funds Association has also reported an increase in the number of people aged over 65 with health insurance. In 2019, the number of people over 65 with health cover increased 1.3 per cent to 16,700, it said.
While people used to drop their cover when they got nearer retirement age, more are now finding space in their budgets to keep it as long as possible, to give them an extra layer of peace of mind that treatment will be there when they need it.
Claims more common
While no one hopes to claim on an insurance policy, sometimes it can make people feel that they are “getting their money’s worth”. Health insurance can be one of the most frequently claimed-upon covers, particularly if you have a policy that covers some of your everyday healthcare needs.
New cover options
The health insurance market is constantly evolving with new types of cover being introduced, including affordable ‘everyday’ policies, wellbeing-focused options that incentivise people to make healthy choices, and even cancer-specific solutions to help Kiwis cover the cost of cancer treatment and diagnosis.
While these types of cover may not be appropriate for everyone, depending on their circumstances, the more that health insurance is in the news and a topic of discussion, the more it stays top of people’s minds.
Like to explore your needs? We can help you secure an appropriate level of health insurance protection for your needs, goals, and budget.
Like to explore your needs?
Get in touch. Whether you’re looking for new health cover or like to talk about an existing policy, we can help you secure an appropriate level of health insurance protection for your needs, goals, and budget.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.