Boston, MA -- (SBWIRE) -- 10/06/2012 -- The fundamental reason for the under developed life insurance market in New Zealand is the preference for social welfare schemes for benefits that are usually just provided by life insurance companies. These social welfare schemes are provided through universal pensions by the government and the Accident Compensation Corporation (ACC). The low penetration rate of the life insurance segment in New Zealand can also be assessed from the Christchurch earthquake experience, whereby many of the victims were uninsured. The industry is preparing for several challenges as a result of several earthquakes and an overhaul of regulation in the form of the Insurance (Prudential Supervision) Act in 2010. However, these factors are expected to lead to a fundamental shift in the life insurance market with hopes that it will renew risk awareness among customers.
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- Given that New Zealanders have a low preference for life insurance policies, life insurers adopted multi-distribution channels in order to expand the market and create awareness.
- The impact of the Christchurch earthquake is expected to generate a renewed risk awareness among the population for life insurance products. In addition, the country’s aging population and insurers’ efforts towards product development to cater to the changing needs of the consumer is expected to drive the life insurance segment growth over the forecast period.
- Although the life insurance industry in New Zealand is not as strict as Australia’s, local regulation is improving under the Reserve Bank of New Zealand. With the introduction of the Insurance (Prudential Supervision) Act 2010 (IPSA), all insurers are required to obtain a license from the Reserve Bank of New Zealand (RBNZ) by 7 March 2012 and to obtain a full license by September 2013.
- New Zealanders are very money cautious and have a low preference for life insurance policies. In order to expand the market and create awareness, life insurers adopted multi-distribution channels. The distribution of insurance products evolved during the review period as a result of technological developments.
- Some of the large life insurance companies operating in New Zealand, apart from Sovereign Assurance Company Limited, are: AMP, Asteron Life Limited, AXA New Zealand, AIA New Zealand, ACE Insurance Limited, Tower NZ, Westpac Life Insurance and CIGNA Life Insurance.
This report provides a comprehensive analysis of the life insurance market in New Zealand:
- It provides historical values for the New Zealand life insurance market for the report’s 2007–2011 review period and forecast figures for the 2012–2016 forecast period
- It offers a detailed analysis of the key sub-segments in the New Zealand life insurance market, along with market forecasts until 2016
Companies Mentioned in this Report: Sovereign Assurance Company Limited , Australian Mutual Provident Society , Partners Life, Cigna Life Insurance New Zealand , Asteron Life Limited, Tower Life (NZ) Limited
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