The life insurance industry in New Zealand is predicted to grow from NZD5.9bn ($3.5bn) in 2024 to NZD8.3bn ($4.8bn) in 2029.
This means a CAGR of 7% with regards to gross written premiums and is attributed to increasing demand for whole life and personal accident insurance, as well as a growing awareness of protection policies.
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In addition, according to GlobalData and its insurance database, the New Zealand life insurance market is expected to reach NZD6.4bn ($3.8bn) in gross written premiums (GWP) in 2025.
Swarup Kumar Sahoo, senior insurance analyst at GlobalData, said: “Economic recovery, coupled with easing inflation and increased private investment, will support household consumption and drive demand for life insurance products. However, challenges such as high unemployment and inflation could pose risks to this growth.”
Life personal accident and health (PA&H) insurance represents the largest line of business in the New Zealand life insurance industry, accounting for 65.3% of the life insurance GWP in 2024. It is expected to grow at a CAGR of 6.9% over 2025-29, driven by rising healthcare expenditure and a resultant 10%-15% increase in premium prices in 2024.
According to the Financial Services Council (FSC), the percentage of New Zealanders with health insurance rose from 32% in 2022 to 37% in 2023, indicating a higher uptake of health policy due to growing concern regarding access to quality healthcare.
Term life insurance, which holds a 27.8% share of the life insurance GWP in 2024, is projected to grow at a CAGR of 6.4% during 2025–2029.
Sahoo added: “Term life policies are favored for their affordability and are popular for covering mortgages and personal loans. As a result, despite economic challenges, term life insurance remains resilient.”
