New Zealand has one of the world’s lowest life insurance penetrations rates, even by developing market standards.
Much of the reason can be attributed to shear consumer ignorance, indicates a study undertaken by the New Zealand life insurance unit of US insurer, CIGNA.
According to CIGNA, a survey of New Zealand consumers revealed that many respondents perceived that life insurance was too expensive, the process too complex and not rewarding.
In addition, many said they would not know where to start or who to trust.
Summing up the survey’s findings, CIGNA New Zealand CEO Gail Costa said: “What the research really showed us is that people are looking for certainty and ease. They generally agree that life insurance is necessary and want to get it, but they neither understand nor trust what they’ve been offered in the past.”
According to Swiss Re, New Zealand life premium income of NZ$1.7bn ($1.3bn) in 2009 represented a mere 0.9% of GDP.
