Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Personal insurance claims top one billion dollars

The amount paid out in claims by the personal insurance industry (life and income protection insurance) in the year ending December 2013 was $1,113,506 making it the third successive year that the New Zealand industry has paid more than $1b out in claims.

FSC Chief Executive Peter Neilson, in releasing the industry statistics for the year to 31 December 2013, particularly welcomed the growth in income protection insurance over the last five years. Annual premium income for individual trauma insurance (that usually covers loss of income following severe health issues such as stroke, cancer or heart attacks) had grown by 58% over the period. Other individual replacement income insurance premiums had grown by 29% and term life insurance premiums had grown by 31%. Over the same period pay-outs from income protection policies grew by 95%.

The growth rates are all well in excess of inflation over the same period which suggests the gap between personal insurance held and the risk exposure is narrowing.

Most New Zealand families with a mortgage have life insurance but only one in five New Zealand families have income protection cover. As most New Zealand two income families would be ineligible for a sickness benefit if they were off work for an extended period, because of the family income test. This is the greatest area of vulnerability for New Zealand families and it is good to see the insurance gap narrowing.

Many New Zealanders don’t realise that they are two times more likely to be unable to work for six months or more following a major health problem compared with being off work for six months following an accident covered by ACC.

The FSC Quarterly statistics are available on the FSC website.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news