New Zealand Insurance Report

Published 16 July 2015

  • 60 pages
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  • Includes 3 free updated quarterly reports
$1,295.00
New Zealand Insurance Report

BMI View: In 2015 and 2016, the weakness of the NZD will cause premiums in New Zealand's insurance sector to fall in USD terms. Over the medium and long term, premiums in both major segments are expected to expand by around 3-4% annually. In neither case is there a clear catalyst for rapid growth. Some life insurers will benefit from the further development of KiwiSaver products.

Insurance is socialised in New Zealand to a much greater extent than in other comparable countries. In the life segment, the insurers have had to contend with the widespread (if incorrect) view held by New Zealanders that the universal old aged pension paid by the government to people who are aged 65 or over is sufficient for retirement needs. The government has countered this with the successful promotion of KiwiSaver funds to which employers and employees contribute. The government has also established the New Zealand Superannuation Fund (NZSF), a sovereign wealth fund (SWF) whose mission is to accumulate assets to ensure that the ageing of New Zealand's population does not cause a fiscal crisis, given that the old age pension is paid by the government out of recurrent revenue. Some of the insurers, or their affiliates, are involved with the provision of KiwiSaver funds. In spite of this, for now it appears as though life insurance will remain very underdeveloped by most metrics.

In the non-life segment, partial cover of houses against earthquakes and other natural catastrophes is delivered by the Earthquake Commission (EQC), while comprehensive personal accident cover is delivered on a no-fault basis through the Accident Compensation Corporation (ACC). Private health insurance is provided through health funds that are generally considered to be separate from the rest of the non-life segment. Other covers (e.g. motor vehicle, commercial property and general liability) are provided by the non-life insurers.

In this environment, there are no obvious catalysts for growth....

BMI Industry View
7
SWOT
9
Insurance
9
Political
10
Economic
11
Operational Risk
13
Industry Forecast
15
Life Premiums Forecast
15
Life Premiums
16
Table: Gross Life Premiums Written (New Zealand 2012-2019)
16
Life Claims
16
Table: Life Insurance Claims (New Zealand 2007-2013)
17
Life Insurers' Assets
17
Table: Assets (New Zealand 2007-2013)
17
Life Insurance Drivers
18
Table: Life Expectancy by Gender (New Zealand 2012-2019)
18
Table: Demographic Breakdown (New Zealand 2012-2019)
18
Non-Life Premiums Forecast
19
Non-Life Premiums
19
Table: Gross Non-Life Premiums Written (New Zealand 2012-2019)
21
Table: Net Non-Life Premiums Written (New Zealand 2012-2019)
21
Non-Life Claims
22
Table: Non-Life Insurance Claims (New Zealand 2007-2013)
22
Table: Non-Life Insurance Claims by Line (New Zealand 2007-2014)
23
Non-Life Sub-Sectors Forecast
24
Table: Non-Life % Breakdown (New Zealand 2012-2019)
24
Motor and Transport Insurance
26
Table: Motor Vehicle Insurance (New Zealand 2012-2019)
26
Table: Transport Insurance (New Zealand 2012-2019)
27
Property Insurance
27
Table: Property Insurance (New Zealand 2012-2019)
28
General Liability Insurance
28
Table: General Liability Insurance (New Zealand 2012-2019)
28
Industry Risk Reward Ratings
29
Asia Pacific Industry Risk/Reward Index
29
Table: Asia Pacific Insurance Risk/Reward Index
30
Market Overview
31
Life Market Overview
31
The Product Offering
31
The Competitive Landscape
32
Non-Life Market Overview
33
The Product Offering
33
The Competitive Landscape
34
Company Profile
37
AMP Limited
37
Insurance Australia Group
40
Sovereign
42
Suncorp Group
44
TOWER
47
Demographic Forecast
49
Table: Population Headline Indicators (New Zealand 1990-2025)
50
Table: Key Population Ratios (New Zealand 1990-2025)
50
Table: Urban/Rural Population & Life Expectancy (New Zealand 1990-2025)
51
Table: Population By Age Group (New Zealand 1990-2025)
51
Table: Population By Age Group % (New Zealand 1990-2025)
52
Methodology
54
Industry Forecast Methodology
54
Risk/Reward Index Methodology
57
Table: Indicators
59
Table: Weighting of Indicators
60

The New Zealand Insurance Report has been researched at source and features BMI Research's independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.

BMI's New Zealand Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the New Zealand insurance industry.

Key Benefits

  • Benchmark BMI's independent insurance industry forecasts for New Zealand to test other views - a key input for successful budgeting and strategic business planning in New Zealand's insurance market.
  • Target business opportunities and risks in New Zealand through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:

  • Life/non-life Premiums: Total premium growth (USDmn), premium growth (% y-o-y), penetration (% of GDP), density (USD per capita) for Life and Non-Life sectors, claims reinsurance, and assets and liabilities.
  • Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor, transport, property, personal accident, health, general liability and credit financial).

BMI’s Insurance Risk Reward Index

BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Growth Drivers & Risk Management Projections

Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:

  • Population: Male/female, by age group, active/pensionable/youth population % of total, urban/rural population % of total.
  • Freight: Tonnage – air freight, rail freight, road freight, inland waterway.
  • Motor: Fleet size by type of vehicle % change y-o-y.
  • Epidemiology: Disease Adjusted Life Years and private health expenditure.

Market Overview & Rankings

Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.

Sources

The insurance Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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