insurance-statsInsurance claims statistics in New Zealand are available for all lines of insurance, from life and health to income protection and mortgage repayment insurance. According to the Insurance Council of New Zealand, which represents the general insurance and fire insurance industry in the country, an estimated $2 billion in claims are paid out in a typical year. But let’s delve deeper into more specific lines of insurance.

Personal Insurance Claims Statistics

As a whole, New Zealand personal insurance companies paid out millions of dollars in claims under their income protection, critical illness, trauma, total permanent disablement (TPD) and life insurance policies.

For example, in 2011, AMP, with over four million customers, paid out $335.1 million in claims. More notably, the company paid:

  • 18.85% of income protection insurance claims for motor vehicle accidents.
  • 26.29% of trauma insurance claims for breast cancer and 30.29% for all other cancers.
  • 24.84% of TPD claims for accidents.
  • 38.58% of life insurance claims for cancer.

 

At Tower Insurance, the longest income protection insurance claim it paid was for 17 years. And its youngest income protection claimant is age 21. On average, Tower also pays claims for disabilities in any given year to more than 539,000 New Zealanders of working age.

 

Sovereign, which provides income protection coverage, life and disability insurance, and health insurance, tracks the top claim causes. In its most recent report released in 2009, cancer and heart disease were the main claim causes.

 

Statistics from a leading life insurance company also indicate the extent of claims for cancer and the amount of money paid out by insurance companies. Here are some examples of life insurance claims paid out recently:

 

  • $500,000 for a 50-year-old male with bowel cancer;
  • $308,100 for a 39-year-old female with gastric cancer;
  • $305,895 for a 37-year-old female with an inoperable tumor;
  • $260,099 for a 39-year-old male with lymphoma of the stomach;
  • $253,845 for a 26-year-old male with a malignant melanoma.

 

Fidelity Life Insurance, which offers income protection and other life and disability insurance products, paid a total of $38.5 million in claims to New Zealanders for the year ending June 30, 2011. Of that amount, the company paid $8.3 million income protection claims and $5.8 million critical illness claims.

 

These income protection benefits are paid out monthly by insurance companies and reflect the important role they play in providing New Zealanders with serious illnesses or disabilities with a financial safety net while they are out of work. The claim money enables recipients to pay their bills during treatment and the recovery period.

 

Health Insurance Claims Statistics

 

According to the Health Funds Association of New Zealand (HFANZ), health insurance claims continue to rise each year. In 2012, health insurance payouts totaled $876 million, up 5.2% from 2011. About half of these claims are made to New Zealanders age 30 to 59.

 

For Tower Insurance, the most common procedures it paid claims on were cancer related and surgical treatments for children, such as tonsils and adenoids. The two largest individual claims it has paid to date are $128,000 for cancer and $122,000 for several heart problems.

 

The Significance of Insurance

 

The payment of these claims brings to light the importance of private insurance. Consider this question: If you don’t have insurance, would you be able to pay for these health treatments and the associated rehabilitation costs to get you well again?

 

If you answer “no” to the above question, IncomeProtectionInsuranceNZ.co.nz can help you turn your response around. We work with the major insurance brokers to find the best income protection, mortgage repayment insurance, or other life and disability protection that meets your specific needs. You never know when you might have an illness or injury that prevents you from working for several months. Insurance claims statistics are testimony to why you should get protected today and avoid the financial consequences of not being able to work.

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