Exploring underinsurance within New Zealand

This report was commissioned by the FSC, who engaged staff at the School of Economics and Finance at Massey University to investigate the extent and degree of underinsurance of personal risk in New Zealand. 

The survey results showed rates of life insurance ownership which are similar to those in the US or Australia. Levels of life cover were also comparable. Similar results were obtained for TPD, trauma and income protection insurance.

There was no indication that there is a national crisis with take up rates of life insurance ownership, though there was strong evidence of high levels of underinsurance so that levels of cover did not correspond to actual financial vulnerability. There was also evidence of inertia in coverage levels, as well as indications that calculations of required life cover were inadequate, as illustrated by the typical underinsurance of the primary earner and over-insurance of the secondary earner.

Read the research report.

For all media enquiries, please contact:

Richard Klipin
Chief Executive Officer
Financial Services Council of New Zealand 021 0233 5414 or richard.klipin@fsc.org.nz