Chubb Life Insurance New Zealand has introduced a Moderate Trauma Cover option within its Assurance Extra portfolio, a move aimed at broadening its trauma insurance offerings as the local life insurance market projects notable growth through 2029.
The new product provides policyholders with a lower-cost alternative to standard Trauma Cover while maintaining coverage for the same critical illness conditions.
However, eligibility for claims under the Moderate Trauma Cover requires higher severity thresholds across 11 commonly covered conditions. This approach is intended to support customers seeking a balance between affordability and protection.
According to Chubb Life NZ’s general manager for strategy and marketing, Simon Tohill, the insurer is responding to evolving consumer preferences around flexibility and budget-conscious protection planning.
“We’re giving customers greater choice in how they structure their protection to suit their needs and budget. They now have the option to take Moderate Trauma Cover on its own or mix and match their protection level across both our Trauma and Moderate Trauma Covers. They’ll also have the choice to take out our Continuous Trauma option on both covers for added peace of mind,” he said.
The company has also rolled out several supplementary changes to the Assurance Extra suite. These include the addition of a Newborn Children’s Benefit and a feature allowing policyholders to convert Trauma Cover to Moderate Trauma Cover.
Business-focused enhancements were made to Assurance Extra Business, offering revised policy review schedules and coverage terms for life, trauma, disability, and income protection products.
The launch coincides with industry forecasts indicating that New Zealand’s life insurance sector is set to grow from $5.9 billion in gross written premiums (GWP) in 2024 to $8.3 billion by 2029, based on analysis by GlobalData. This represents a projected compound annual growth rate of 7%.
Key drivers of this expansion include growing interest in personal accident and health (PA&H) insurance and an aging population seeking financial security amid rising healthcare costs.
GlobalData estimates the market will reach $6.4 billion in GWP by 2025, an 8.2% increase year-on-year.
Swarup Kumar Sahoo, senior insurance analyst at GlobalData, said macroeconomic factors such as improving GDP, moderating inflation, and increased household consumption are likely to support ongoing growth in life insurance adoption.
Despite growth projections, New Zealand’s life insurance penetration remains relatively low compared to several Asia-Pacific markets, including South Korea, Japan, and Singapore. In 2023, the country’s penetration rate was 1.3% – which Sahoo suggests highlights opportunities for market development, particularly through technology and product innovation aimed at addressing affordability.
“To address this issue, insurers need to introduce innovative products and leverage digital technologies to make insurance more affordable and accessible,” Sahoo said.
