Insurances

The Insurances market in New Zealand is projected to reach a market size (gross written premium) of NZ US$13.41bn in 2024.
Within this market, Life insurances dominate with a projected market volume of NZ US$7.66bn in 2024.
The average spending per capita in the Insurances market is estimated to be NZ US$2.54k in 2024.
When compared globally, it is evident that the highest nominal value is expected to be reached the United States, with a projected market size of US$3.8tn in 2024.
The Insurances market in New Zealand is expected to show an annual growth rate (CAGR 2024-2029) of 1.86%, resulting in a market volume of NZ US$14.70bn by 2029.
In the global comparison, it is predicted that the United States will generate the highest gross written premium, reaching US$3.8tn in 2024.
New Zealand's insurance market is experiencing a surge in demand for earthquake and natural disaster coverage due to the country's high seismic activity.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. 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.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

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, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

In New Zealand, the Insurances market is experiencing a significant shift in customer preferences, market trends, and local special circumstances. Customer preferences in the insurance market of New Zealand are evolving towards more personalized and digital solutions. Customers are increasingly seeking tailored insurance products that meet their specific needs and lifestyle. With the rise of digitalization, there is a growing demand for online insurance services that offer convenience and accessibility. This shift in preferences is in line with global trends where customers are looking for seamless and user-friendly insurance experiences. Trends in the New Zealand insurance market indicate a growing focus on sustainability and climate change resilience. As the country faces environmental challenges, such as natural disasters and climate-related risks, insurance companies are adapting their products to provide coverage for these emerging threats. There is also a noticeable trend towards innovative insurance solutions, such as parametric insurance, to address the changing risk landscape in the region. Local special circumstances in New Zealand, such as its unique geographical location and exposure to natural disasters, play a significant role in shaping the insurance market. The country's vulnerability to events like earthquakes, floods, and storms has led to an increased emphasis on risk management and insurance coverage. Insurance companies in New Zealand are working closely with local authorities and communities to develop comprehensive risk mitigation strategies and insurance products that address the specific needs of the population. Underlying macroeconomic factors, such as economic growth, regulatory environment, and technological advancements, are also influencing the insurance market in New Zealand. The country's stable economic growth and regulatory framework provide a conducive environment for insurance companies to innovate and expand their offerings. Technological advancements, such as artificial intelligence and big data analytics, are being leveraged to enhance underwriting processes, risk assessment, and customer engagement in the insurance sector.

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.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.