Number of Kiwis with insurance up due to changing attitudes to risk
The number of New Zealanders with insurance has increased due to changing attitudes to risk, according to early data from the Financial Services Council (FSC). The uptick is said to be brought about by the instability of the past few years, including the global economic downturn and COVID-19.
Income protection insurance ranks first in the list of increased insurance levels since 2022, up 9% from the previous year with 20% of respondents reporting that they have this product. This is followed by:
Health insurance, up 5% (now 37%)
Trauma and critical illness insurance, up 4% (now 22%)
Total and permanent disability insurance, up 3% (now 17%)
Life insurance, up 1% (now 39%)
In a news release, FSC chief executive officer Richard Klipin said that the rise in Kiwis protecting themselves reflects the world experiencing several “black swan” events, from the pandemic and to the recession that followed it.
“If there’s a silver lining to the past few years, it’s that these events are starting more conversations in households and encouraging New Zealanders to take steps to manage their financial wellbeing,” Klipin said.
“Rainy days” prompt more Kiwis to protect themselves
Klipin also stressed the importance of this rising insurance trend, as the life and health insurance sector of New Zealand retained high payouts across 2022. He said that $1.06 billion was paid out in claims for the life sector, while the health sector doled out $1.41 billion in claims to New Zealanders in need.
