In its latest Insight & Trends report, the Financial Services Council (FSC) of New Zealand has cast a spotlight on a significant shift in health insurance coverage among New Zealanders, amid broader discussions on the country's evolving healthcare needs.
The FSC emphasised the increasing reliance on health insurance as part of a broader analysis on New Zealand's healthcare system and demographic changes.
The data revealed a marked increase in the number of individuals securing health insurance, with an additional 250,000 New Zealanders opting for coverage in the last year, elevating the total to approximately 1.45 million insured individuals in 2023.
This surge in health insurance enrolment coincides with New Zealand facing demographic shifts, notably an aging population and extended life expectancy, now averaging at 82 years.
Richard Klipin, CEO of the FSC, emphasised the importance of addressing the discrepancy between life span and health span, noting that New Zealanders are spending a considerable portion of their lives in moderate or poor health.
“It is great that we are living longer, but this will put significant strain on our social systems, with Kiwis over 65 set to double by 2050 and life expectancy at an average of 82 years old,” he said. “As the pace of life span speeds up, we aren't seeing an equal improvement in our health span and as such, research indicates that we are living half of our lives in moderate or poor health.”
The increase in health insurance uptake is particularly significant in light of the report's findings on mental health, which has emerged as a pressing concern, especially among younger populations. This underscores the vital role that health insurance can play in ensuring access to mental health services.
Moreover, the report drew attention to the overall health perception among New Zealanders, with 86% rating their health as good, a figure that stands out against the OECD average of 68%. This positive self-assessment further emphasises the need for a robust health insurance system to maintain and improve health outcomes.
The FSC calls for a strategic overhaul of the healthcare system, advocating for a model that integrates public and private healthcare sectors more effectively.
“We need to rethink healthcare and create a well-balanced and integrated health system that achieves great patient outcomes for the benefit of all New Zealanders as they age,” Klipin said.
The FSC seeks to foster collaboration across political parties and the healthcare industry to create an accessible and affordable healthcare framework for all New Zealanders. A key aspect of this initiative is leveraging the capabilities and efficiencies of the private sector, including health insurance providers, to complement the public healthcare system.
