New Zealand’s life insurance market is forecast to grow from $5.9 billion (US$3.5 billion) in gross written premiums (GWP) in 2024 to $8.3 billion (US$4.8 billion) by 2029, reflecting a compound annual growth rate (CAGR) of 7%, according to research from GlobalData.
The expansion is expected to be driven by demand for whole life and personal accident and health (PA&H) insurance, alongside greater consumer awareness of financial protection products.
GlobalData’s Insurance database estimates that GWP will reach $6.4 billion (US$3.8 billion) in 2025, representing annual growth of 8.2%. Key factors contributing to this increase include New Zealand’s aging population, rising healthcare costs, and concerns about financial security amid the cost-of-living pressures.
Economic growth is also expected to support the life insurance sector. New Zealand’s gross domestic product (GDP) is forecast to expand by 2% in 2025, following lower growth rates of 0.73% in 2023 and 0.24% in 2024.
Swarup Kumar Sahoo, senior insurance analyst at GlobalData, said economic recovery – alongside moderating inflation and an increase in private investment – is likely to boost household consumption and strengthen demand for life insurance products. However, challenges such as high unemployment and persistent inflation could impact market performance.
PA&H insurance is the largest segment in the life insurance industry, accounting for 65.3% of total GWP in 2024. This segment is projected to grow at a CAGR of 6.9% from 2025 to 2029, supported by rising healthcare expenditures and an anticipated increase in premium costs ranging from 10% to 15% in 2024.
According to the Financial Services Council (FSC), the percentage of New Zealanders with private health insurance rose from 32% in 2022 to 37% in 2023, reflecting growing concerns about healthcare access and affordability.
Term life insurance, which represents 27.8% of the total market in 2024, is expected to grow at a CAGR of 6.4% over the next five years.
“Term life policies are favoured for their affordability and are popular for covering mortgages and personal loans. As a result, despite economic challenges, term life insurance remains resilient,” Sahoo said.
Whole-life insurance, the third-largest segment, held a 3.8% share of GWP in 2024. Although a smaller portion of the market, whole-life insurance has shown strong growth, recording a CAGR of 19.2% between 2020 and 2024. It is projected to grow at an 8.0% annual rate through 2029.
Demographic shifts are expected to drive further demand, with the population aged 65 and older projected to reach 1.3 million by 2040. Life expectancy has also risen, from 81.6 years in 2015 to 82.9 years in 2024, reinforcing demand for long-term financial planning solutions.
Other life insurance products are projected to account for 3.1% of total GWP in 2024.
GlobalData noted that New Zealand’s life insurance penetration rate, at 1.3% in 2023, remains lower than other Asia-Pacific markets, such as South Korea (7.4%), Hong Kong SAR (15.9%), Japan (6.3%), and Singapore (7.5%), suggesting further opportunities for insurers.
However, affordability concerns linked to the rising cost of living could contribute to underinsurance.
“To address this issue, insurers need to introduce innovative products and leverage digital technologies to make insurance more affordable and accessible,” Sahoo said.
