The FSC’s latest Money & You research reveals the cost-of-living crisis continues to stand in the way of New Zealanders and insurance. Of those who took part in its survey, 74% say health and life insurance is too expensive.
According to the Money & You: Managing Risk Through Challenging Times report, a quarter of those who have never had insurance would take out a policy if their health started declining.
This, states the report’s authors, demonstrates a misunderstanding of insurance risk management.
Kirk Hope, the organisation’s CEO, says the country faces an underinsurance challenge, with just 41% of respondents to its survey having life cover and 39% having health insurance.
Data published by FSC shows just over 4.1m life insurance products are in place, with many people holding more than one policy (life, IP, TPD). Annual inforce premiums stand at more than $3.2bn.
The latest Money & You report also indicates there is a significant knowledge gap around financial risk management.
Findings include:
- Nearly half (45%) admit to a poor understanding of the relationship between risk and return
- More than 70% of New Zealanders understand the limitations of insurance, such as the effect of age and illness on premiums and cover
- Most life and health insurance is funded personally by individuals
- Close to 90% of respondents want life and health insurance provided by their employer
- 22% of those who held life cover no longer do so
Hope says: “The findings highlight an urgent need for greater financial education around risk management, alongside efforts to remove barriers that prevent employers from offering insurance as part of employee remuneration packages.”
Tables from the report, published below, show that 35% of those surveyed have never had life insurance, and that 22% had insurance at one time but no longer do so.
Data and graphic / FSC Money & You: Managing Risk Through Challenging Times
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