The FSC’s latest Spotlight on Life Insurance reveals life insurance cover numbers are softening as premium pressure builds.
The FSC says in a statement that its latest Spotlight finds a life insurance sector continuing to support New Zealanders “…while also facing a clear challenge around access, affordability and cover levels.”
FSC industry data shows four million life insurance covers across New Zealand, against an estimated population of 5.35 million – as at 31 March 2026. The September 30, 2025 Quarterly Snapshot showed 4.13 million life insurance covers.
The council says that in the March 2026 quarter annual life insurance premiums reached $3.31 billion, up 2.7% year-on-year “…even as cover numbers continued to fall across several key products.”
It says this suggests New Zealanders are still paying for important protection “…but fewer covers across key product areas may point to pressure on household budgets, changing customer needs or people reassessing the level of cover they can afford.”
FSC CEO Kirk Hope notes life insurance plays a major part in New Zealand’s financial safety net.
“But, as a sector, we need to keep working on affordability, confidence and helping more Kiwis understand the protection they can have.”
The latest snapshot also shows the largest areas of annual premium income remain term and accidental death cover, at $1.64 billion, followed by trauma insurance at $672 million and income protection at $539 million.
“These products sit at the heart of the protection conversation. They are designed to help people manage some of life’s biggest financial shocks,” says Hope.
The FSC notes the challenge for the sector is ensuring life insurance remains accessible, understood and valued at a time when many households are under pressure. Rising premiums can lead people to reduce or cancel cover, but doing so can leave them more exposed later.
“That makes regular policy reviews important. Customers should be encouraged to talk to their insurer or adviser before making changes, as there may be ways to adjust cover, benefits or excesses without losing important protection altogether.”
Key figures from the March 2026 quarter:
- 4m life insurance covers
- 5.35m estimated New Zealand population
- $3.31b in annual life insurance premiums
- +2.7% year-on-year growth in annual premiums
- $1.64b in annual premium income from term and accidental death cover
- $672m from trauma cover
- $539m from income protection
See the September 30, 2025 Quarterly Snapshot below.
