Low Financial Literacy the Cause of Under-Insurance

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With New Zealand ranked 27 in a list of 34 OECD countries when it comes to the penetration of life insurance, we sought your views as to why this may be.

Last week, Kris Ballantyne, Chief Marketing Officer at Partners Life, suggested under-insurance is due to a combination of cultural barriers and a lack of financial literacy.

Meanwhile, AIA’s Len Elikhis, the insurer’s Chief Officer Product & Vitality, suggested life insurance be rolled into KiwiSaver schemes as a way to address the issue.

The result of our poll so far appears to support their conculsions, with improving financial literacy and KiwiSaver life insurance being voted to the top of our list of options.

The results so far are:

  • Improve financial literacy (39%)
  • Ask government to include life insurance with all Kiwisaver plans (21%)
  • Make life insurance compulsory for all mortgage payers (16%)
  • Develop lower-priced and more flexible life cover products (9%)
  • I have a different idea (9%)
  • I don’t believe under-insurance is an issue (5%)

This poll is open until 4 May 2021.

What is the single most important action that should be taken to address the under-insurance issue in New Zealand?

View Results

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See our story: Lack of Financial Literacy Linked to Under-Insurance