New Zealand’s Life & Health Insurance: Trends, Regulations and Solutions

In a world where regulations constantly evolve and the stakes are high, managing life and health insurance effectively is more critical than ever. For insurance carriers, the challenge lies in staying ahead of regulatory changes and ensuring seamless claim processing.

Employers must balance the well-being of their workforce with the complexities of compliance while government bodies oversee and implement policies that safeguard public health.

Industry trends

New Zealand's health insurance market is on an upward trajectory. IBISWorld predicts the country’s health insurance revenue will grow at an annualised rate of 9.4% over the five years leading up to 2023-2024, reaching NZD2.6 billion. This growth is bolstered by rising premiums and an increasing volume of claims, particularly as the population aged 50 and over grows. (IBIS World 2024)

Key insights from the New Zealand health insurance space:

• The market size (gross written premium) is expected to reach NZD0.75bn by the end of 2024.
• The average spending per capita on health insurance is projected to reach NZD142.20 in 2024.
• The market is anticipated to grow at an annual rate (CAGR) of 5.53%, with the gross written premium reaching NZD0.93bn by 2028.
• The New Zealand market’s embrace of digital platforms is making access easier and claims processing more streamlined. (Statista n.d.)

The country’s customers are also increasingly leaning towards more comprehensive coverage options, seeking plans that offer a wider range of benefits and services.

Regulatory changes

The latest regulatory updates in New Zealand have brought about significant changes in the group life and health insurance sector. The Financial Markets Authority (FMA) plays a crucial role in monitoring and regulating insurer conduct, ensuring that these changes are effectively implemented and adhered to.

Regulatory changes have impacted insurers in several ways, including:

• Data privacy and security: 83% of New Zealand and Australian insurance companies consider adhering to data privacy and security regulations a major challenge.
• Climate-related data: About 74% of insurers leverage climate-related data and analytics to improve risk assessment and underwriting processes.
• AI chatbots: Globally, 67% of insurers are turning to generative AI chatbots to enhance customer service, showcasing a growing reliance on AI technologies in the industry[1]. (Libatique 2024)

These regulatory updates also include several key provisions aimed at improving transparency and fairness:

• Clear communication: Insurers are now responsible for asking consumers the right questions when processing new policies, ensuring that consumers understand what information they need to provide.
• Simplified policies: Insurance policies must be written and presented clearly, making them easy for consumers to understand.
• Fair contracts: Insurance-specific exceptions from the unfair contract terms provisions in the Fair Trading Act 1986 have been removed. It is clear which terms are part of the contract's ‘main subject matter’ and cannot be declared unfair.
• Timely payouts: Insurers must pay out on claims within a reasonable time, providing greater transparency and certainty for policyholders.

These changes aim to create a fairer, more transparent insurance landscape in New Zealand. Staying informed of these updates bolsters the stakeholders’ ability to navigate the evolving regulatory environment more efficiently.

End-to-end insurance program management

Gallagher Bassett (GB) provides decades of industry expertise in the day-to-day policy administration of group life and health insurance programs. Our comprehensive services cover policy management, including membership data management, billing and receipting, underwriting and claims management, health claims assessment and payment, annual renewals and member communications.

Our team of seasoned life and health insurance administrators and claims specialists manages over 85,000 members from hundreds of groups annually on behalf of major New Zealand insurers. With our dedicated professionals, you can trust that every detail of your insurance program is handled with precision and care, ensuring optimal service and satisfaction for all stakeholders.

Contact our team to learn more about how Gallagher Bassett can support your insurance needs here.

Sources

IBIS World. 2024. Health Insurance in New Zealand - Market Size, Industry Analysis, Trends and Forecasts (2024-2029). January. https://www.ibisworld.com/nz/industry/health-insurance/525/#IndustryStatisticsAndTrends.

Libatique, Roxanne. 2024. What are the challenges facing New Zealand insurers in 2024? March 2024. https://www.insurancebusinessmag.com/nz/news/breaking-news/what-are-the-challenges-facing-new-zealand-insurers-in-2024-483014.aspx.

Statista. n.d. Health insurance - New Zealand. Accessed July 2026, 2024. https://www.statista.com/outlook/fmo/insurances/non-life-insurances/health-insurance/new-zealand.