New Zealand’s insurance industry is increasing its advertising expenditure as competition intensifies and industry dynamics shift, according to the Nielsen Ad Intel 2024 Advertising Spend Report.
The latest data highlighted a notable rise in marketing efforts from insurance companies, positioning them among the country’s top advertisers.
The report identified IAG as one of the 10 largest advertisers in New Zealand, reflecting a growing trend of insurers investing heavily in brand visibility.
The financial sector also features prominently, with ANZ Bank and Bank of New Zealand listed among the top 20 advertisers, alongside major retailers and fast-food chains.
Monique Perry, managing director for Nielsen Pacific, stated that the data demonstrates businesses are not only maintaining but expanding their advertising investments.
“Advertising remains the most effective way to forge strong connections between brands and consumers. Nielsen’s insights have become indispensable for advertisers and agencies looking to stay ahead of the curve,” she said.
Rose Lopreiato, Pacific commercial lead at Nielsen Ad Intel, pointed to a rise in advertising spend from insurance and pharmaceutical brands.
“Retail remains the leader in ad spend, but we’re seeing pharmaceuticals and insurance brands making major strides. With an increasingly dynamic market, these insights are crucial for advertisers refining their strategies and allocating budgets effectively,” she said.
Insurance was among the fastest-growing advertising categories, with fire and general insurance ad spending rising 35% year-over-year.
This increase follows a broader expansion in the general insurance market, where total gross written premiums (GWP) are forecasted to grow from $9.7 billion in 2024 to $12.9 billion by 2028, representing a 7.3% compound annual growth rate (CAGR), according to market research firm GlobalData.
The rise in insurance advertising coincides with increased demand for property and motor insurance, which together accounted for around 75% of total GWP in 2023. Industry analysts attributed this growth to factors such as rising claims from extreme weather events and inflation-driven premium increases.
Sneha Verma, an insurance analyst at GlobalData, noted that with more frequent natural disasters, reinsurers have raised rates, which has contributed to higher premiums for home and agricultural insurance policies. Property insurance accounted for 41.7% of total general insurance GWP in 2023 and is projected to grow at a 7.9% CAGR through 2028.
Motor insurance, which represented 32.9% of the market, saw 9.4% growth in 2023, largely due to inflation-led premium increases and significant claims payouts following Cyclone Gabrielle.
Liability insurance is also experiencing steady expansion, with a projected 6.5% in 2025.
