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

 


Personal Insurance Claims Maintain Support for Kiwis

Personal Insurance Claims Maintain Support for New Zealanders


The amount paid out in claims by the personal insurance industry (life and income protection insurance) in the year ending June 2014 was $1,096,617,000 maintaining the support the industry provides to New Zealanders.

FSC Chief Executive Peter Neilson today released the industry statistics for the year to 30 June 2014, noting that claim payments for individual income replacement benefits had increased by 3.6% to $107,325,000 for the year and payments for trauma benefits had increased 2.6% to $134,291,000.

In the same period claims made on the death of policyholders covered by individual term policies fell back by 2.8 % to $410,700,000 while death & disablement, replacement income and trauma claims under group policies increased by a total of almost 1% (0.8%) to $20,416,000.

Payments made on trauma policies are now the largest category of claim by a significant margin. Trauma benefits have been welcomed by policyholders as a way of gaining security and protecting their families in the event that they are diagnosed with a serious ailment, such as stroke, cancer or heart attack.

These policies, also known as critical care benefits (and previously as “dread disease”) pay a benefit upon diagnosis which allows the policyholder to take time out of the workforce during treatment and recovery.

In the 5 years to 30 June 2014 the number of individual trauma benefits in force has increased 43% to 623,629 and annual premium income from trauma benefits has increased 75%, an indication that their value is recognised.

Income replacement policies also remain popular with 530,931 individual benefits in force as at 30 June 2014, an increase of 28% over the past 5 years.

These benefits cover the greatest area of vulnerability for New Zealand families 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. 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 www.fsc.org.nz .

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news