In its just-published report, New Zealand Insurance Market Update 2023, Marsh reveals that premium rates for life and TPD insurance remained stable throughout 2023, but says health premiums are likely to continue rising.
It also highlights that life insurance claims relating to cancer were prevalent, and there was a significant increase in mental illness cases.
When it comes to income protection insurance, it reports that some insurers declined to take on new policies in the long-term space with benefit periods up to age 65, but would instead offer a shorter rate-guarantee period than the standard three-years.
This, says the report, typically resulted in premium increases of 15% to 25% before considering industry and claims history.
Turning to critical illness insurance, Marsh says rates were more volatile due to the potential for high claims volumes. Rates ranged from flat to increases of 20% throughout 2023.
Its report states that the health insurance market in New Zealand experienced significant premium increases in light of medical inflation last year, and expects this to continue throughout 2024.