Personal insurance uptake on the rise

Personal insurance uptake on the rise

More and more people in New Zealand are getting personal insurance – including health, life, income protection, trauma insurance and more. And according to the Financial Services Council (FSC), it might a ‘side effect’ of the pandemic.

A safety net for people’s financial future

Recent data from the FSC revealed that, in the three months to December 2021, a growing number of New Zealanders have taken out some form of personal insurance. This includes the likes of life cover, income protection and trauma insurance (to name a few). Over 2021, the number of personal insurance policies increased by 92,000 to 4.2 million. 

According to Richard Klipin, chief executive officer of the FSC, Covid-19 looks to be having an impact on families looking at protecting their own financial well-being. 

Source: Financial Services Council, Life Insurance Spotlight, December 2021.

Interestingly, data also seems to show a movement from Total and Permanent Disability to broader and more comprehensive trauma cover. The FSC believes this may indicate that consumers are taking a closer look at their changing cover needs – perhaps with the help of their advisers.

Health and well-being are top of people’s minds

Data also confirms a strong uptake for health insurance. The latest figures (December 2021) tell us that the total number of people with health cover in New Zealand is just under 1.45 million, with almost $1.5 billion paid in claims over 2021.

With Covid-19 putting health and well-being under the spotlight, more and more New Zealanders are looking for ways to better take care of themselves. And being designed to provide faster access to private medical treatment and diagnosis, health insurance can be one of them.

Source: Financial Services Council, Health Insurance Spotlight, December 2021.

As the FSC noted, “aside from improving the quality of life for many Kiwis, the private system also eases some of the pressure on the public system.” It’s estimated that nearly half of all elective surgeries in New Zealand, including cancer treatments, are performed privately. 

Thinking about your cover?

If you’re considering reinforcing your financial safety net, get in touch. As insurance advisers, we can help you understand your options and take out appropriate protection for you and your family.

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 developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.