The Financial Services Council’s 2026 Conference in Auckland last week saw more than 750 people gather over two days to discuss issues directly affecting the financial services sector including access to advice, the regulatory environment, under-insurance and KiwiSaver changes, alongside global trends that impact New Zealand.
Health and life insurance were amongst the major topics addressed with new analysis showing that New Zealanders are cutting back on health insurance at a time when pressure on the public health system grows.
A MartinJenkins report, commissioned by the FSC, and launched at the conference through a panel exploring the potential of private health and life insurance, shows health and life insurance already play an important role in New Zealand’s wider health system, and says the opportunity now is to better recognise and strengthen that contribution alongside the public system.
FSC Chief Executive Kirk Hope says in a statement the findings show health and life insurance are not alternatives to the public health system but are complementary pillars of it.
“The evidence shows insurance is already providing billions of dollars of funding, expanding access to care and protecting families from the financial consequences of illness and death. The opportunity for government is to recognise and strengthen that contribution as part of a more resilient New Zealand health system.”
The report found the average health insurance claim paid per member increased 75% cent to $1,921 in 2025 (up from $1,097 in 2021).
..life insurance in New Zealand is 0.8% of GDP, compared with an OECD average of 3.5%..
At the same time, more people are ending their cover. In 2025 9% of people with health insurance terminated their policy, up from 7% in 2022. The number of people ending major medical cover increased to 80,770 over the same period.
The report also highlights New Zealand’s under-insurance challenge. Around 35% of adults have private health insurance, below the OECD average, while life insurance in New Zealand is 0.8% of GDP, compared with an OECD average of 3.5%.
“Insurance cannot become a luxury good. If we want private insurance to support the wider health system, access has to broaden. Workplace schemes are one of the most practical ways to do that. They can make cover easier and more affordable than people trying to buy it alone,” Hope says.
The report finds 43% of insured people are covered through an employer or another group scheme.
Affordable Professional Financial Advice
The conference also highlighted new polling showing voters want politicians to stop tinkering with KiwiSaver and start building a serious long-term retirement savings plan. A big majority also agreed that every New Zealander should have affordable access to professional financial advice at key stages of life.
The Curia poll, commissioned by the FSC, found 91% of Kiwis say it is very or fairly important that major political parties work together on a long-term retirement savings strategy that remains stable across future governments.
…84% agree every New Zealander should have affordable access to professional financial advice at key stages of life…
The poll also found 84% agree every New Zealander should have affordable access to professional financial advice at key stages of life, including buying a first home, starting a family or preparing for retirement.
“Affordable advice should not be treated as a luxury product for people who already have wealth. Most New Zealanders make their biggest financial decisions without enough support. That is a policy failure hiding in plain sight,” says Hope.
“If [political] parties are serious about financial wellbeing, they need to get serious about access to professional advice.”
Hope says in a statement the results reinforce FSC’s Election Manifesto message that financial security cannot be built by one lever alone.
“New Zealand needs stronger savings, better advice and deeper investment in our own future, he says.
Also see: Insurance Firms Major Winners at FSC Awards and NZers back AI for Scam Detection But Not On Money Calls.
