Swiss Re yesterday published the results of a survey undertaken this year to understand New Zealanders' attitudes and behaviours towards life insurance:
The inaugural report, Closing New Zealand's mortality protection gap, estimates that the mortality protection gap for New Zealand households – the gap between households' financial resources and the protection they need to maintain their living standard in the event of the death of a primary earner – at USD 435 billion (NZD 670 billion) as of 2020.
The findings show that this gap is projected to widen to more than USD 500 billion (>NZD 750 billion) within the next 10 years, in part due to rising consumption and household debt levels. As an industry, there is a need to act now.
The current COVID-19 crisis has increased the sense of risk and insecurity. More than 80% of those surveyed in New Zealand believe that losing the income of the primary earner will affect their family significantly. This is slightly higher than the 72% of all advanced Asia Pacific markets Swiss Re surveyed prior to COVID-19.
Swiss Re's findings show almost two thirds of households in New Zealand have some form of mortality protection gap. About a fifth of households have just 10% or less of the financial resources required to cover their protection needs; in other words, a protection gap of 90%.
The report also examines how to close the gap in New Zealand. Swiss Re estimates that in the decade to 2030, this could be achieved with an additional USD 1.5 billion (NZD 2.3 billion) of life premiums every year. Yet only 39% of consumers reported owning a life insurance policy, and survey responses find that buying life cover is not their default option for increasing security.
You can download the report here: Closing the mortality protection gap in New Zealand | Swiss Re
Other daily news:
AIA Vitality is offering 1,000 points for members to get their Covid-19 vaccine
Montoux, sellers of decision science software, is running a seminar on engaging long-term care insurance clients
nib: are joining Protecht, sellers of risk management software, for a seminar on culture and conduct risk management.
Partners Life: an interview with Life Kris Ballantyne and Mark Leishman discussing financial literacy can be found here: