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This week is Sorted Money Week, and the Commission for Financial Capability (CFFC) has highlighted insurance as the first focus area.
CFFC head and Retirement Commissioner Diane Maxwell said the Kiwi “she’ll be right” attitude could have something to do with New Zealanders’ lackadaisical attitude toward insurance. Another could be cultural expctations that extended family and community would help in times of hardship.
She quoted CFFC research, which shows that New Zealand ranks surprisingly low (35th out of 45 countries) for insurance cover among OECD countries. It is ranked similarly to Argentina, Hungary and Iceland in terms of investment in house, vehicle, life, health and income insurance.
Another CFFC survey found only half of the New Zealanders surveyed could count on insurance to cover property loss due to theft, serious damage to their home through disaster or bad weather, or a car crash or major breakdown.
Incomeprotection was one of the least favoured forms of insurance, with only 15% of Kiwis taking it out. New Zealanders also tend to under-insure their homes, with recent studies showing 85% of houses are under-insured.
“When something bad happens, you want to be looking after your people and your well-being, not stressing about how much money you’re going to need to repair the damage,” Maxwell noted. “Let the insurers do the heavy lifting financially while you look after the rest.”
