New Zealand’s general insurance market is projected to expand at a compound annual growth rate (CAGR) of 8.3%, reaching $16.3 billion (US$9.6 billion) in gross written premiums (GWP) by 2029, according to a report from GlobalData.
Growth in the sector is expected to be driven by rising premium rates, medical inflation, and increased demand for property and motor insurance, which together are anticipated to account for 74.7% of the market in 2025.
GlobalData projects the general insurance market will grow by 10.3% in 2025, with property insurance leading at 10.6% growth, followed closely by motor insurance at 10.3%.
Property insurance is expected to remain the largest segment, comprising 42.3% of total general insurance GWP in 2025. Factors influencing growth include increased construction expenses and higher reinsurance costs, as global reinsurers reassess New Zealand’s risk exposure.
The introduction of the Natural Hazards Act in mid-2024 is also expected to lead to adjustments in pricing and coverage strategies among insurers.
The frequency of natural disasters between 2021 and 2023 contributed to higher claims and increased repair costs, leading to rising premiums. The property insurance loss ratio escalated from 69.1% in 2022 to 96% in 2024, reflecting the financial strain on insurers. Although major weather events were less frequent in 2024, the potential for future disasters continues to pose risks to the industry.
Swarup Kumar Sahoo, senior insurance analyst at GlobalData, said insurers are adjusting their pricing strategies in response to climate-related claims.
“The trend towards risk-based pricing has further increased premiums for consumers. As climate-related claims surge, insurers face the challenge of balancing affordability with adequate protection while adapting to regulatory changes and evolving risk profiles. In the presence of these factors, property insurance GWP is expected to grow at a CAGR of 8.6% during 2025-29,” he said.
Motor insurance is expected to be the second-largest general insurance segment, contributing 32.4% of total GWP in 2025.
Declining new vehicle sales, inflationary pressures, and supply chain disruptions are prompting insurers to adjust premium rates to account for rising claims costs. The sector has also been affected by large-scale events such as the Auckland Floods and Cyclone Gabrielle. The motor insurance market is projected to grow at a CAGR of 8% from 2025 to 2029.
Liability insurance is forecast to account for 8.1% of the total general insurance market in 2025. This segment is seeing demand due to mandatory insurance requirements and the growing need for directors’ and officers’ liability coverage. Cyber risks and regulatory compliance are also influencing growth, with insurers increasingly focusing on cybersecurity measures and risk management practices. Liability insurance GWP is expected to grow at a CAGR of 6.6% over the next five years.
The remaining 17% of the market is composed of other general insurance segments.
Sahoo noted that regulatory shifts, climate risks, and economic stability will continue to shape the industry.
“The New Zealand general insurance market is expected to continue its strong growth trajectory, supported by regulatory reforms, perceived high nat-cat risk, technological advancements, and a stable economic environment,” he said. “Insurers are likely to leverage insurtech solutions to streamline operations and enhance customer experiences. However, challenges such as natural disasters and geopolitical uncertainties remain key risks that could impact the market’s outlook in the next two to three years.”
Meanwhile, New Zealand’s life insurance sector is expected to grow from $5.9 billion (US$3.5 billion) in GWP in 2024 to $8.3 billion (US$4.8 billion) by 2029, with a CAGR of 7%, according to research by GlobalData.
Market expansion is projected to be driven by increasing demand for whole life and personal accident and health insurance, along with greater consumer awareness of financial protection products.
