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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news