It’s no secret that New Zealanders are often uninsured for life insurance, but recent reports on the Swiss Re mortality protection gap show that the gap is widening.
Thursday, September 23, 2021 1:13 pm
Following the report Good return We asked the heads of Partners Life and Asteron Life for their views on the situation and what they are finding in the New Zealand life insurance market.
The Swiss Re report (Resolving the New Zealand Mortality Protection Gap) was released this week, the New Zealand Household Mortality Protection Gap (MPG), the gap between household financial resources and the protection needed to maintain living standards. Is estimated. Primary Income Death Event – $ 670 Billion.
The report also predicts that MPG will rise to $ 750 billion within the next decade. This is partly due to rising consumption and household debt levels.
The industry is now acting, considering that Swiss Re estimates that only 39% of those surveyed have life insurance policies and New Zealand’s MPG per household exceeds $ 830,000. It states that it needs to be done.
According to the report, bridging the gap in New Zealand is not easy, mainly because the high amount of life insurance is perceived, and almost two-thirds of respondents think it is too expensive to buy. I am.
Naomi Ballantyne, Managing Director of Partners Life, states that Kiwi is not insured for personal risk protection products, but the reasons are complex and a combination of several factors.
“I don’t think anything bad will happen to us. It will be a country of extreme risk takers, which is why we are so good at dangerous sports and invent something like bungee jumping. The reason is.”
Ballantyne says kiwis also overestimate their financial resilience, and the government takes care of them through ACC or illness benefits and considers them poor in financial literacy.
“We have a culture that talking about money is taboo, so we don’t even talk to our kids about our income and expenses …[and] There is no government incentive or even encouragement for New Zealanders to protect themselves. “
Ballantyne says direct insurers have historically struggled to gain market share. new Zealand”.
She said recent Partners Life campaigns are designed to use humor to confront people with what’s wrong, and risk protection insurance can help them when they happen. say.
She says innovations designed to make risk protection insurance purchases more efficient and effective will also help all insurers make more efforts to educate consumers. ..
“Government safety nets cannot and do not protect current lifestyles if unexpectedly interrupted.”
The head of Asteron Life Grant Willis states that New Zealand has traditionally been an asset-driven country and guaranteeing their livelihoods, income, etc. is not a top priority.
Willis said that insurance education is one way to help, “… we always tell these stories, build trust in the industry, and New Zealanders how life insurance gives them and their Farnau. I can do more to help you understand what helps you. “
“One thing that helps close that gap is accessible and affordable advice, so advisors play an important role in helping people understand the risks and protect themselves through insurance. “
Insurers can help by making their products flexible, affordable and sustainable, and allowing advisors to easily adjust and adjust to the changing needs of their clients.
“And ensure that support options are in place to ensure that customers facing temporary financial difficulties maintain key insurance and maintain long-term financial resilience.”
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Life Cover-Not Selling for Kiwi Insurance Companies
Source link Life Cover-Not Selling for Kiwi Insurance Companies