The amount paid out in claims by the personal insurance industry (life and income protection insurance) in the year ending December 2013 was $1,113,506,000. This is the third successive year that the New Zealand insurance industry has paid more than $1b out in claims.
Most New Zealand families with a mortgage have life insurance but only one in five New Zealand families have income protection cover. Most New Zealand, two-income families would be ineligible for a sickness benefit if they were off work for an extended period because of the family income test. This is the greatest area of vulnerability for New Zealand families and it is good to see the insurance gap narrowing.
Many New Zealanders don’t realise that they are two times more likely to be unable to work for six months or more following a major health problem compared with being off work for six months following an accident covered by ACC.
Source: Scoop via The Financial Services Council. http://www.scoop.co.nz/stories/BU1402/S00111/personal-insurance-claims-top-one-billion-dollars.htm
Published on Tuesday, September 16th, 2014, under Latest News