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

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news