The Financial Services Council (FSC) of New Zealand posted its quarterly snapshot for the life insurance sector, with the new infographic revealing that the market earned $3.07 billion in annual life insurance premiums.
Term and accidental death insurance topped the life insurance lines with $1.519 billion in annual premium income as of March 31, accounting for almost half of the sector. Second to it was trauma insurance, which recorded $601 million, followed by income protection at $495 million.
According to the infographic, the sector was responsible for the coverage of 4.1 million Kiwis in the past year. The latest tally shows that there are 5.18 million residents in New Zealand.
Claims paid out in the sector also shot up from last quarter, costing more than $300 million in the period ending March 2023. In comparison, for the same period ending December 2022, the life insurance sector paid out more than $275 million in claims.
The rise in claims coincides with the recent industry loss estimates stemming from New Zealand’s 2023 weather events. An updated figure from data provider PERILS puts the industry losses at $1.925 billion, 25% higher than its previous estimate last March.
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