Business Monitor International


New Zealand Insurance Report

Published 03 September 2014

  • 60 pages
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  • Includes 3 free updated quarterly reports
 
$1,295.00
New Zealand Insurance Report

BMI View: Both the life and non-life segments of New Zealand's insurance industry continue to produce results which do not inspire much confidence for the future. In terms of the life markets premium growth remains fairly flat although profits have been driven by non-insurance based activity. In terms of the non-life market there is still adverse ripple effects being felt from 2011 Christchurch/Canterbury earthquakes and 2013 weather effects which pushed up reinsurance costs. In both life and non-life markets the poor results stimulated a number of changes in the competitive environment including a number of large scale acquisitions in which larger firms aim to achieve greater economies of scale in the long run .

The key data still suggests that both the life and non life sectors are growing at a fairly sluggish rate and that by most metrics the industry remains underdeveloped in 2014. There are a few key reasons preventing both of these sectors to grow at a faster rate, firstly there is an apparent underlying disinterest in insurance in New Zealand which is reflected in the fairly low market penetration in both the life and non life sectors, compared to other more developed regional peers.

Other issues contributing to the lack of growth in the industry include rising prices and reinsurance costs which have the potential to decrease growth in the future. All of this is in the context of an economy which itself is going through a period of slow growth and economic activity does not bode well for the future.

Recent Developments

  • South African insurer Youi officially launches in NZ targeting the IAG dominated car, home and contents insurance markets

  • Life companies are increasingly reliant on non insurance portion of the business such as KiwiSaver or other wealth management offerings.

  • The cost of reinsurance looks like it will continue to rise in the future as companies react to residual affects of 2011 Christchurch earthquake and adverse weather...

Table of Contents

BMI Industry View
7
SWOT
9
Insurance
9
Political
11
Economic
12
Business Environment
14
Industry Forecast
16
Total Premiums Forecast
16
Total Gross Premiums
16
Table: Total Gross Premiums Written (New Zealand 2011-2018)
16
Total Claims
17
Table: Total Insurance Claims (New Zealand 2007-2013)
17
Life Premiums Forecast
18
Life Premiums
18
Table: Gross Life Premiums Written (New Zealand 2011-2018)
18
Life Insurance Drivers
19
Table: Insurance Key Drivers, Disease Adjusted Life Years (New Zealand 2011-2018)
19
Table: Insurance Key Drivers, Private Health Expenditure (New Zealand 2011-2018)
20
Claims And Payments
21
Table: Life Insurance Claims (New Zealand 2007-2013)
21
Assets
21
Table: Assets (New Zealand 2006-2013)
21
Non-Life Premiums Forecast
22
Non-Life Premiums
23
Table: Gross Non-Life Premiums Written (New Zealand 2011-2018)
23
Table: Net Non-Life Premiums Written (New Zealand 2011-2018)
23
Non-Life Claims
24
Table: Non-Life Insurance Claims (New Zealand 2006-2013)
24
Non-Life Sub-sector Forecast
24
Table: Non-Life % Breakdown (New Zealand 2011-2018)
25
Motor And Transport Insurance
27
Table: Motor Vehicle Insurance (New Zealand 2011-2018)
27
Table: Transport Insurance (New Zealand 2011-2018)
27
Property Insurance
28
Table: Property Insurance (New Zealand 2011-2018)
28
General Liability Insurance
28
Table: General Liability Insurance (New Zealand 2011-2018)
28
Industry Risk Reward Ratings
29
Asia Pacific Industry Risk/Reward Ratings
29
Table: Asia Pacific Insurance Risk/Reward Ratings
30
Market Overview
31
Life Market Overview
31
Non-Life Market Overview
34
Company Profile
40
AMP Limited
40
Insurance Australia Group
43
Sovereign
46
Suncorp Group
48
TOWER
51
Demographic Forecast
53
Table: New Zealand's Population By Age Group, 1990-2020 ('000)
54
Table: New Zealand's Population By Age Group, 1990-2020 (% of total)
55
Table: New Zealand's Key Population Ratios, 1990-2020
56
Table: New Zealand's Rural And Urban Population, 1990-2020
56
Methodology
57
Industry Forecast Methodology
57
Risk/Reward Rating Methodology
60
Table: Indicators
62
Table: Weighting of Indicators
63

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