Claims rises outstrip premium increases

Life insurance premiums rose to $3.24 billion in calendar 2024 from and $3.16 billion in 2023, a 2.5% increase, and from $2.69 billion in calendar 2019, according to data from the Financial Service Council NZ.

The data shows that claims paid out jumped by $102.4 million to $1.32 billion, an 8.4% increase in the latest year.

The data shows a jump in quarterly claims to $354.4 million in the December quarter from $326.8 million in the September quarter and from $304.4 million in the December quarter last year.

The most common type of policy remained term life/accidental death with almost $1.6 billion in premiums written, up from $1.56 billion in 2023.