Life insurance - New Zealand | Statista Market Forecast

The Life insurance market market in New Zealand is projected to reach a market size (gross written premium) of US$7.66bn in 2024.
In the same year, the average spending per capita in the Life insurance market market is estimated to be US$1.45k.
The market is expected to grow at an annual growth rate (CAGR 2024-2029) of 1.24%, resulting in a market volume of US$8.14bn by 2029.
In comparison to other countries, the United States is expected to generate the highest gross written premium in the Life insurance market market, reaching US$1.3tn in 2024.
New Zealand's life insurance market is witnessing a growing demand for customized policies tailored to the unique needs and preferences of its diverse population.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

The Life insurance market in New Zealand is experiencing a shift in customer preferences towards more comprehensive coverage options and flexible policies.

Customer preferences: Customers in New Zealand are increasingly seeking life insurance policies that offer a wide range of coverage, including critical illness and disability benefits, in addition to the traditional death benefits. This shift can be attributed to the growing awareness among consumers about the importance of financial protection in the face of unexpected health challenges or accidents.

Trends in the market: One noticeable trend in the New Zealand life insurance market is the rise of digital insurance platforms and online distribution channels. Insurers are leveraging technology to offer simplified underwriting processes, quick policy issuance, and personalized insurance solutions to cater to the evolving needs of customers. This trend is not unique to New Zealand but reflects a global shift towards digitalization in the insurance industry.

Local special circumstances: In New Zealand, the regulatory environment plays a significant role in shaping the life insurance market. The regulatory framework emphasizes consumer protection, transparency, and fair treatment of policyholders. Insurers operating in the country need to adhere to strict regulatory requirements, which ultimately benefit customers by ensuring the reliability and integrity of the insurance products available in the market.

Underlying macroeconomic factors: The economic stability and growth prospects of New Zealand also influence the development of the life insurance market. As the economy expands and disposable incomes rise, individuals are more inclined to invest in insurance products as a means of securing their financial future and protecting their families. Moreover, the low interest rate environment in the country may drive demand for life insurance products that offer investment components or savings benefits in addition to risk coverage.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.