General Insurance in New Zealand - Industry Market Research Report

Cyber safety: An increasingly cloud-based economy presents new opportunities for insurers

General insurers have found themselves in a changing economy that benefits them. Households and businesses are becoming more risk-averse, seeking coverage for a widening range of threats. Insurers collect regular payments (known as premiums) from policyholders, which are used to pay for claims. The industry records high claims costs and operating losses, but natural disasters have provided the industry with greater scope to raise premiums, thrusting the industry forwards. Insurers have capitalised on customer interest and hiked premiums despite inflationary and competitive price pressures. The industry is performing strongly, as motor vehicle and domestic insurance products have remained popular. Revenue is expected to climb at an annualised 3.1% over the five years through 2022-23 to a total of $7.3 billion. However, revenue is anticipated to slip by an estimated 0.2% in 2022-23 as household and business growth slows. General insurers underwrite insurance policies to protect individuals and businesses from financial loss associated with property damage, motor vehicle damage, liability and other risks. Underwriting involves assuming risks and assigning premiums. Reinsurers take all or part of the risk associated with existing insurance policies that other insurers underwrite. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.