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New Zealand Insurance Report Q1 2013 - Product Image

New Zealand Insurance Report Q1 2013

  • ID: 2313607
  • November 2012
  • Region: New Zealand
  • 62 pages
  • Business Monitor International


  • AMP Limited
  • Insurance Australia Group
  • Sovereign
  • Suncorp Group
  • MORE

The developments through 2012 have highlighted the strengths of and the challenges facing New Zealand’s non-life segment. Non-life insurers have demonstrated that they had the financial and operational strength to deal with the surge in claims arising from the main Christchurch earthquake of February 22, 2011. The Earthquake Commission (EQC) and the Accident Compensation Corporation
(ACC) have also performed well. The insurers have been able to access reinsurance. To date, it appears that all have been able to pass on the additional costs as increased premiums. Many of the non-life companies are elements of much larger regional (Australian) or global organisations.

The challenges relate mainly to the sluggish economy, the lack of consumer confidence and the maturity of many non-life lines in New Zealand. Although, by the standards of developed countries, non-life penetration is not particularly high, the latest comments from the non-life companies indicate that premium growth this year will remain at single-digit levels. In part because of the socialisation of risks through the EQC and the ACC, there is no obvious catalyst for non-life penetration to rise.

In the life segment, two main trends continue to stand out. First, premium growth, as in the non-life segment, is sluggish. This may be because of the recent compression in real incomes. A more fundamental problem, which the Financial Services Council hopes to address, is that New Zealanders tend not to see the need for life insurance products and/or begrudge having to pay premiums. Second, the assets under management (AUM) of the KiwiSaver schemes have been growing rapidly. We believe life density will still be low by the standards of developed countries at the end of the forecast period.


  • AMP Limited
  • Insurance Australia Group
  • Sovereign
  • Suncorp Group
  • MORE

Executive Summary 5
Table: Total Premiums, 2010-2017 5

Key Insights And Key Risks 5

SWOT Analysis 7

New Zealand Insurance Industry SWOT 7

New Zealand Political SWOT 8

New Zealand Economic SWOT 9

New Zealand Business Environment SWOT 10

Life Sector Overview 11

Developed States Life Sector Overview 11
Table: Developed States Life Premiums 2010-2017 11

New Zealand Life Sector Update 13

Life Industry Forecast Scenario 14
Table: Life Premiums, 2010-2017 14

Growth Drivers And Risk Management Projections 15

Population 15
Table: Insurance Key Drivers, Demographics, 2010-2017 15

Non-Life Sector Overview 17

Developed States Non-Life Sector Overview 17
Table: Developed States Non-Life Premiums, 2010-2017 (US$mn) 17

New Zealand Non-Life Sector Update 19

Non-Life Industry Forecast Scenario 20
Table: Total Non-Life Premiums, 2010-2017 20

Growth Drivers And Risk Management Projections 21

Macroeconomic Outlook 21
Table: New Zealand – Economic Activity, 2011-2016 23
Table: Macroeconomic Data And Forecasts, 2010-2017 24

Political Stability Outlook 24

Healthcare 26

Epidemiology 28
Table: Insurance Key Drivers, Disease Adjusted Life Years, 2010-2017 29

Insurance Risk/Reward Ratings 31
Table: New Zealand’s Insurance Risk/Reward Rating 31
Table: Developed States Insurance Risk/Reward Ratings 32

Competitive Landscape 33

Major Players In New Zealand’s Insurance Sector 33
Table: Gross Written Premiums And Estimated Market Shares, June 30 2009-June 30 2010 35

Earthquake Commission 36

Accident Compensation Corporation 37

Health Funds 38

Other Asset Pools 38

Company Profiles 40

AMP Limited 40

Insurance Australia Group 43

Sovereign 46

Suncorp Group 48


Country Snapshot 53
Table: New Zealand's Population By Age Group, 1990-2020 ('000) 54
Table: New Zealand's Population By Age Group, 1990-2020 (% of total) 55
Table: New Zealand's Key Population Ratios, 1990-2020 56
Table: New Zealand's Rural And Urban Population, 1990-2020 56

BMI Methodology 57

Insurance Risk/Reward Ratings 59
Table: Insurance Risk/Reward Indicators And Rationale 59
Table: Weighting Of Indicators 61

AMP Limited
Insurance Australia Group
Suncorp Group

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