New Zealand Insurance Report

Published 06 May 2015

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

BMI View: With private expenditure on the rise, the stable New Zealand economy houses an established Insurance market with scope for growth - particul arly in the non-life segment. The life insurance segment still remains slow-moving but may still offer opportunity for new and existing players as a result of this low level of penetration and a new surge of interest in KiwiSaver products.

New Zealand's geographical disposition and vulnerability to natural disasters will remain an important component of the non life segment however soaring property prices and high household debt has meant that although property insurance is an integral component to the sector it will experience moderate growth. To balance this slowdown, BMI's steady outlook on passenger vehicle sales illustrates a strong potential for growth in Motor Vehicle insurance which will continue in the short term to remain the second largest in the sub sector. Meanwhile, due to a historically strong reliance and protection provided by the Accident Compensation Corporation (ACC) and this coupled with high levels of household debt limit spending on life insurance which has been viewed by many New Zealand residents as non essential in the past. Despite this, the life insurance sector.

New Zealand boasts a strong government led protection scheme and the continuing reliance on this has been the main catalyst for the slow moving life sector. The Accident Compensation Coproration (ACC) experienced an almost 10% increase (9.95%) in its total cost of claims for the financial year ending June 2014. According to the ACC the last financial year saw the most claims in the past five years with 1,647,842 new claims being made. In a country with a relatively small population of 4.5million people it illustrates that there is a proportionately high demand for personal health and accident related insurance which is largely being met by the public sector rather than the private. As a result we maintain our forecast that...

Table of Contents

BMI Industry View
7
SWOT
9
Insurance
9
Political
11
Economic
12
Business Environment
14
Industry Forecast
16
Total Premiums Forecast
16
Total Gross Premiums
17
Table: Total Gross Premiums Written (New Zealand 2011-2018)
17
Total Claims
18
Table: Total Insurance Claims (New Zealand 2006-2013)
18
Life Premiums Forecast
18
Life Premiums
20
Table: Gross Life Premiums Written (New Zealand 2011-2018)
21
Life Insurance Drivers
21
Table: Insurance Key Drivers, Disease Adjusted Life Years (New Zealand 2011-2018)
21
Table: Insurance Key Drivers, Private Health Expenditure (New Zealand 2011-2018)
22
Claims And Payments
23
Table: Life Insurance Claims (New Zealand 2006-2013)
23
Assets
23
Table: Assets (New Zealand 2006-2013)
24
Non-Life Premiums Forecast
25
Non-Life Premiums
25
Table: Gross Non-Life Premiums Written (New Zealand 2011-2018)
26
Table: Net Non-Life Premiums Written (New Zealand 2011-2018)
27
Non-Life Claims
27
Table: Non-Life Insurance Claims (New Zealand 2006-2013)
27
Non-Life Sub-Sectors Forecast
28
Table: Non-Life % Breakdown (New Zealand 2011-2018)
29
Motor And Transport Insurance
31
Table: Motor Vehicle Insurance (New Zealand 2011-2018)
31
Table: Transport Insurance (New Zealand 2011-2018)
32
Property Insurance
33
Table: Property Insurance (New Zealand 2011-2018)
33
General Liability Insurance
33
Table: General Liability Insurance (New Zealand 2011-2018)
34
Industry Risk Reward Ratings
35
Asia Pacific Industry Risk/Reward Index Q1 2015
35
Table: Asia Pacific Insurance Risk/Reward Index - Q1 2015
35
Market Overview
37
Life Market Overview
37
Non-Life Market Overview
39
Company Profile
44
AMP Limited
44
Insurance Australia Group
47
Sovereign
50
Suncorp Group
52
TOWER
55
Demographic Forecast
57
Table: New Zealand's Population By Age Group, 1990-2020 ('000)
58
Table: New Zealand's Population By Age Group, 1990-2020 (% of total)
59
Table: New Zealand's Key Population Ratios, 1990-2020
60
Table: New Zealand's Rural And Urban Population, 1990-2020
60
Methodology
61
Industry Forecast Methodology
61
Risk/Reward Index Methodology
64
Table: Indicators
66
Table: Weighting of Indicators
67

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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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc