Business Monitor International


New Zealand Insurance Report

Published 16 May 2014

  • 60 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
New Zealand Insurance Report

BMI View: The latest results from the leading New Zealand insurance companies (in relation to H213 and 2013) confirm our view that the prospects for both major segments are fairly uninspiring. In the life segment, the leaders' businesses have performed well by many metrics: however, the actual and pot ential growth appears to relate mainly to KiwiSaver and other wealth management products, which do not include an insurance component. The non-life segment has coped well in the aftermath of the Chr istchurch/ Canterbury earthquakes of 2011. Higher costs and reinsurance rates have, by and large, been passed onto customers. However, many of the non-life companies recognise that further price increases may not be accepted by the customers. This is at a time that competitive pressures are picking up in various commercial lines.

By most metrics, the insurance sector in New Zealand remains underdeveloped in early 2014. This is partly because of the socialisation of risk through the Earthquake Commission (EQC) and the Accident Compensation Corporation (ACC), in the non-life (property and casualty) and life segments respectively. The EQC demonstrated its effectiveness in the wake of the main Christchurch earthquake of February 22, 2011. The Accident Compensation Corporation has been actively introducing reforms and changes to resolve its long-term funding issues.

However, there are other challenges. These include a fairly sluggish economy, a general absence of consumer confidence and the maturity of many of the main non-life lines. Non-life companies have been able to pass on the costs of higher reinsurance premiums to their customers. Overall, though, non-life premiums are growing at single-digit rates. There is no obvious catalyst for this to change.

In the life segment, two main trends continue to stand out. First, premium growth, as in the non-life segment, is sluggish. This may be because of the recent compression in real incomes. A more fundamental problem, which...

Table of Contents

BMI Industry View
7
SWOT
9
Insurance
9
Industry Forecast
11
Total Premiums Forecast
11
Total Gross Premiums
11
Table: Total Gross Premiums Written 2011-2018
11
Total Claims
12
Table: Total Insurance Claims 2005-2012
12
Life Premiums Forecast
13
Life Premiums
13
Table: Gross Life Premiums Written 2011-2018
13
Life Insurance Drivers
14
Table: Insurance Key Drivers, Disease Adjusted Life Years 2011-2018
14
Table: Insurance Key Drivers, Private Health Expenditure 2011-2018
15
Claims And Payments
16
Table: Life Insurance Claims 2005-2012
16
Assets
16
Table: Assets 2005-2012
17
Non-Life Premiums Forecast
17
Non-Life Premiums
18
Table: Gross Non-Life Premiums 2011-2018
18
Table: Net Non-Life Premiums 2011-2018
19
Non-Life Claims
20
Table: Non-Life Insurance Claims 2005-2012
20
Non-Life Sub-sector Forecast
21
Table: Non-Life % Breakdown 2011-2018
21
Motor And Transport Insurance
23
Table: Motor Vehicle Insurance 2011-2018
23
Table: Transport Insurance 2011-2018
23
Property Insurance
24
Table: Property Insurance 2011-2018
24
General Liability Insurance
24
Table: General Liability Insurance 2011-2018
24
Industry Risk Reward Ratings
25
Asia Pacific Industry Risk/Reward Ratings
25
Table: Asia Pacific Insurance Risk/Reward Ratings
25
Market Overview
27
Life Market Overview
27
Non-Life Market Overview
29
Company Profile
34
AMP Limited
34
Insurance Australia Group
37
Sovereign
40
Suncorp Group
42
TOWER
46
Demographic Forecast
48
Table: New Zealand's Population By Age Group, 1990-2020 ('000)
49
Table: New Zealand's Population By Age Group, 1990-2020 (% of total)
50
Table: New Zealand's Key Population Ratios, 1990-2020
51
Table: New Zealand's Rural And Urban Population, 1990-2020
51
Methodology
52
Industry Forecast Methodology
52
Risk/Reward Rating Methodology
55
Table: Indicators
57
Table: Weighting of Indicators
58

The New Zealand Insurance Report has been researched at source and features Business Monitor International (BMI)'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.

Regional Outlook

Individual analysis of both Life and Non-Life insurance sector developments and prospects across developed states and emerging markets - supported by BMI's global industry growth forecasts. This is followed by an in-depth evaluation of region- and country-specific trends, focusing on BMI's country-by-country market growth data.

Business Environment Rankings

BMI's Insurance Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (Life and Non-Life) in the insurance market.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Rankings products.

BMI Industry Forecasts

Historic data series (2008-2012) and forecasts to end-2018 for key industry and economic indicators (see list below) supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:

Premiums: Total (US$mn), growth (% y-o-y), penetration (% of GDP), density (US$ per capita) for Life and Non-Life sectors, and total premiums.

Life: Data on gross written premiums for all major non-life segments (e.g. motor, fire, work).

Non-life: Data on gross written premiums for all major life segments (e.g. life, retirement).

Economic: Nominal GDP (US$bn), real GDP growth (%), GDP per capita (US$), population (mn), unemployment (%), exchange rate (against US$).

Competitive Landscape & Rankings

Illustration of the insurance industry via rankings tables comparing gross written premiums by company (US$mn) and market share (%). This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. 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.

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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