Property and Casualty Insurance Market in New Zealand - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Property and casualty insurance market in New Zealand. The market is segmented by type (Home, Motor, Others) by Distribution Channel (Direct, Agency, Banks, Others)

Market Snapshot

Study Period: 2016 - 2026
Base Year: 2021
CAGR: <8 %

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Market Overview

  • Property and casualty insurance market in New Zealand is estimated to grow at a CAGR of approximately 8% during the forecast period.
  • 2018 was another eventful year for the insurance market in New Zealand, with weather-related losses once again strong (NZD 226 m in 2018 and NZD 243 m in 2017), Insurers responded by raising premiums, which helped them stay profitable. In the last two years, insurance premiums for all personal business classes have increased, with double-digit rises for home rates for both years. In New Zealand, the marine market has seen an increase in written premiums increasing from NZD 126 million in 2016 to NZD 136 million in 2018. During this period, claims values have increased in the last 12 months from 59% to 64%.
  • Property, Motor and personal accident and health insurance were the main drivers of growth, reflecting a share of 91.8 per cent in 2018. Property insurance was the largest sub-segment, with a 42.2% share of Gross Written Premium in 2018. At 24 per cent, life insurance rates in New Zealand are much lower than in many other OECD countries, coverage and premiums for certain non-life insurance policies are relatively high in New Zealand, given its particular risk profile, contributing to a relatively small share of life insurance premiums.
  • New Zealand's largest three and five life insurers account for 54% and 72% of life insurance premiums, respectively. With these two market concentration measures, the life insurance sector in New Zealand is not particularly concentrated and is close to the average. However, there is some merger and acquisition activity in the life insurance market, and the industry is expected to become more centered.
  • Recently, in response to the issues identified in the review and gaps in existing regulation, the Government announced a new financial conduct regime. The plan aims at tackling issues of conduct and encouraging equal consumer service in the sector. The FMA (Financial Market Authority) would allow life insurers to obtain a conduct license. The FMA will regulate the new regime and, under the Financial Markets Conduct Act 2013, will have a full range of licensing and enforcement tools.

Scope of the Report

This report aims to provide a detailed analysis of the Property and casualty insurance market in New Zealand. It focuses on the market dynamics, emerging trends in the segments and regional markets, and insights on various product and application types. Also, it analyses the key players and the competitive landscape in the Property and casualty insurance market in New Zealand.

By Insurance type
Home
Motor
Others
By Channel of Distribution
Direct
Agency
Banks
Others

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Key Market Trends

Increase in Residential Buildings:

Residential buildings are the largest contributor to national construction in New Zealand. Residential buildings contributed 58% of total construction value in 2018. Insurance should be compulsory for people building a new home and doing over NZD 30,000 renovations, a majority of government submissions claim. New Zealand has a population of 4.9 million and is ranked number one for ease of doing business, ease of accessing credit and ease of registration of a property.

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Growing tech Export:

The New Zealand market accounted for 29.1% of New Zealand's export technology sector revenue in 2018. Australian sources of revenue followed closely behind with a 26% share. Fintech and software solutions represented the highest growth segments for this sector. Growth is evident across every New Zealand region, with North Auckland/Northland and Hamilton regions growing by over 16%. The highest growth sectors were Fintech 33.2%and Software Solutions 20.3%.

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Competitive Landscape

The report covers the major players operating in the Property and casualty insurance market in New Zealand. The market is Consolidated, Market is expected to grow during the forecast period due to new government regulations and low penetration in the market compared to OCED countries.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porters 5 Force Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Insurance type

      1. 5.1.1 Home

      2. 5.1.2 Motor

      3. 5.1.3 Others

    2. 5.2 By Channel of Distribution

      1. 5.2.1 Direct

      2. 5.2.2 Agency

      3. 5.2.3 Banks

      4. 5.2.4 Others

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Mergers & Acquisitions

    3. 6.3 Company Profiles

      1. 6.3.1 AIA INTERNATIONAL LIMITED

      2. 6.3.2 ZURICH FINANCIAL SERVICES AUSTRALIA LIMITED

      3. 6.3.3 IAG NEW ZEALAND LIMITED

      4. 6.3.4 TOWER FINANCIAL SERVICES GROUP LIMITED

      5. 6.3.5 AIG INSURANCE NEW ZEALAND LIMITED

      6. 6.3.6 FMG INSURANCE LIMITED

      7. 6.3.7 CROMBIE LOCKWOOD (NZ) LIMITED

      8. 6.3.8 ALLIANZ AUSTRALIA INSURANCE LIMITED

      9. 6.3.9 AON NEW ZEALAND GROUP

      10. 6.3.10 WESTPAC LIFE-NZ- LIMITED

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Property and Casualty Insurance Market market is studied from 2016 - 2026.

The Property and Casualty Insurance Market is growing at a CAGR of <8% over the next 5 years.

AIA INTERNATIONAL LIMITED, ZURICH FINANCIAL SERVICES AUSTRALIA LIMITED, IAG NEW ZEALAND LIMITED, TOWER FINANCIAL SERVICES GROUP LIMITED, AIG INSURANCE NEW ZEALAND LIMITED are the major companies operating in Property and Casualty Insurance Market.

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