Non-Life Insurance in New Zealand, Key Trends and Opportunities to 2020

Published: Jan, 2017 | Pages: 122 | Publisher: Timetric
Industry: Insurance | Report Format: Electronic (PDF)

Summary

Timetric’s 'Non-Life Insurance in New Zealand, Key Trends and Opportunities to 2020' report provides in-depth market analysis, information and insights into the New Zealand non-life insurance segment, including:

• The New Zealand non-life segment’s detailed outlook by product category

• A comprehensive overview of the New Zealand economy and demographics

• A comparison of the New Zealand non-life insurance segment with its regional counterparts

• The various distribution channels in the New Zealand non-life insurance segment

• Detailed analysis of natural hazards and their impact on the New Zealand insurance industry

• Details of the competitive landscape in the New Zealand non-life insurance segment

• Details of regulatory policy applicable to the New Zealand insurance industry

Synopsis

Timetric’s 'Non-Life Insurance in New Zealand Key Trends and Opportunities to 2020' report provides a detailed outlook by product category for the New Zealand non-life insurance segment, and a comparison of the New Zealand insurance industry with its regional counterparts.

It provides values for key performance indicators such as written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, total assets and total investment income during the review period (2011–2015) and forecast period (2015–2020).

The report also analyzes distribution channels operating in the segment, gives a comprehensive overview of the New Zealand economy and demographics, explains the various types of natural hazard and their impact on the New Zealand insurance industry, and provides detailed information on the competitive landscape in the country.

The report brings together Timetric’s research, modeling and analysis expertise, giving insurers access to information on segment dynamics and competitive advantages, and profiles of insurers operating in the country. The report also includes details of insurance regulations, and recent changes in the regulatory structure.

Scope

This report provides a comprehensive analysis of the non-life insurance segment in New Zealand:

• It provides historical values for the New Zealand non-life insurance segment for the report’s 2011–2015 review period, and projected figures for the 2015–2020 forecast period.

• It offers a detailed analysis of the key categories in the New Zealand non-life insurance segment, and market forecasts to 2020.

• It provides a comparison of the New Zealand non-life insurance segment with its regional counterparts

• It analyzes the various distribution channels for non-life insurance products in New Zealand.

• It analyzes various natural hazards and their impact on the New Zealand insurance industry

• It profiles the top non-life insurance companies in New Zealand, and outlines the key regulations affecting them.

Reasons To Buy

• Make strategic business decisions using in-depth historic and forecast market data related to the New Zealand non-life insurance segment, and each category within it.

• Understand the demand-side dynamics, key market trends and growth opportunities in the New Zealand non-life insurance segment.

• Assess the competitive dynamics in the non-life insurance segment.

• Identify growth opportunities and market dynamics in key product categories.

• Gain insights into key regulations governing the New Zealand insurance industry, and their impact on companies and the industry's future.

Key Highlights

• Property insurance was the largest category, accounting for 42.0% of the segment’s gross written premium in 2015. 

• Agriculture plays an important role in New Zealand’s economy. Insurers in New Zealand provide a range of insurance options for farmers and farm assets. 

• Cybersecurity insurance is an emerging trend in New Zealand. Legislation regarding cyber-risks is still evolving in New Zealand. 

• Motor insurance premium prices remain stable throughout the review period. Customers with good claims histories or who invested in fleet risk-management programs received premium discounts.

• The country-wide distribution networks and high levels of customer trust of brokers supported the growth of insurance penetration and demand for non-life insurance. 

• New Zealand’s life insurance segment is highly competitive, in the presence of both domestic and foreign insurers.

 Table of Content

1 Key Facts and Highlights

2 Executive Summary

3 Economy and Demographics

4 Segment Outlook
4.1 Regional Comparison
4.2 Segment Indicators
4.2.1 Gross written premium and penetration
4.2.2 Claims
4.2.3 Profitability
4.2.4 Assets and investments

5 Outlook by Category
5.1 Property Insurance
5.1.1 Product overview
5.1.2 Premium
5.1.3 Profitability
5.2 Motor Insurance
5.2.1 Product overview
5.2.2 Premium
5.2.3 Profitability
5.3 Liability Insurance
5.3.1 Product overview
5.3.2 Premium
5.3.3 Profitability
5.4 Marine, Aviation and Transit Insurance
5.4.1 Product overview
5.4.2 Premium
5.4.3 Profitability

6 Distribution Channel Outlook
6.1 Analysis by Distribution Channel
6.1.1 Brokers
6.1.2 Financial advisers
6.1.3 E-commerce
6.1.4 Bancassurance
6.1.5 Other distribution channels

7 Natural Hazards
7.1 Earthquakes
7.2 Flooding, Landslides and Tornadoes
7.3 Volcanoes
7.4 Exposure

8 Competitive Landscape
8.1 Company Profiles
8.1.1 IAG New Zealand Ltd – company overview
8.1.2 Vero Insurance New Zealand Ltd – company overview
8.1.3 Tower Insurance (NZ) Ltd – company overview
8.1.4 FMG Insurance Ltd – company overview
8.1.5 AIG Insurance New Zealand Ltd – company overview

9 Governance, Risk and Compliance
9.1 Legislation Overview and Historical Evolution
9.2 Latest Changes in Regulation
9.3 Legislation and Market Practice by Type of Insurance
9.3.1 Life insurance
9.3.2 Property insurance
9.3.3 Motor insurance
9.3.4 Liability insurance
9.3.5 Marine, aviation and transit insurance
9.3.6 Personal accident and health insurance
9.4 Compulsory Insurance
9.4.1 Liability insurance for maritime oil pollution
9.4.2 Insurance for clinical trials
9.4.3 Medical insurance for international students
9.5 Supervision and Control
9.5.1 International Association of Insurance Supervisors (IAIS)
9.5.2 Reserve Bank of New Zealand
9.5.3 Insurance Council of New Zealand
9.6 Non-Admitted Insurance Regulations
9.6.1 Overview
9.6.2 Intermediaries
9.6.3 Market practices
9.6.4 Fines and Penalties
9.7 Company Registration and Operations
9.7.1 Type of insurance organization
9.7.2 Establishing a local company
9.7.3 Foreign ownership
9.7.4 Types of license
9.7.5 Capital requirements
9.7.6 Solvency margin
9.7.7 Reserve requirements
9.7.8 Investment regulations
9.7.9 Statutory return requirements
9.7.10 Fee structure
9.8 Taxation
9.8.1 Insurance premium or policy taxation
9.8.2 Withholding taxes on premium paid overseas
9.8.3 Corporate tax
9.8.4 VAT
9.8.5 Captives
9.9 Legal System
9.9.1 Introduction
9.9.2 Access to court
9.9.3 Alternative dispute resolution

10 Databook
10.1 Policies and Premium
10.2 Claims and Expenses
10.3 Assets and Investments
10.4 Property Insurance
10.5 Motor Insurance
10.6 Liability Insurance
10.7 Marine, Aviation and Transit Insurance

11 Definitions and Methodology
11.1 Definitions
11.2 Methodology

12 About Timetric
12.1 Contact Timetric
12.2 About Timetric
12.3 Timetric’s Services
12.4 Disclaimer

List of Tables

Table 1: New Zealand Non-Life Insurance – Key Facts, 2015
Table 2: New Zealand Non-life Insurance – Leading Insurers, 2015
Table 3: New Zealand Government Credit Ratings
Table 4: New Zealand Non-Life Insurance – Gross Written Premium (NZD Billion and US$ Billion), 2011–2015
Table 5: New Zealand Non-Life Insurance – Penetration (%), 2011–2015
Table 6: New Zealand Non-Life Insurance – Gross Written Premium (NZD Billion and US$ Billion), 2015–2020
Table 7: New Zealand Non-Life Insurance – Penetration (%), 2015–2020
Table 8: New Zealand Non-Life Insurance – Premium per Capita (NZD and US$), 2011–2015
Table 9: New Zealand Non-Life Insurance – Premium per Capita (NZD and US$), 2015–2020
Table 10: New Zealand Non-Life Insurance – Paid Claims (NZD Billion and US$ Billion), 2011–2015
Table 11: New Zealand Non-Life Insurance – Paid Claims (NZD Billion and US$ Billion), 2015–2020
Table 12: New Zealand Non-Life Insurance – Profitability Ratio (%), 2011–2015
Table 13: New Zealand Non-Life Insurance – Profitability Ratio (%), 2015–2020
Table 14: New Zealand Non-Life Insurance – Total Assets (NZD Billion and US$ Billion), 2011–2015
Table 15: New Zealand Non-Life Insurance – Total Assets (NZD Billion and US$ Billion), 2015–2020
Table 16: New Zealand Non-Life Insurance – Total Investment Income (NZD Billion and US$ Billion), 2011–2015
Table 17: New Zealand Non-Life Insurance – Total Investment Income (NZD Billion and US$ Billion), 2015–2020
Table 18: New Zealand Non-Life Insurance – Investment Portfolio (NZD Billion), 2011–2015
Table 19: New Zealand Non-Life Insurance – Investment Portfolio (NZD Billion), 2015–2020
Table 20: New Zealand Non-Life Insurance – Direct Written Premium by Category (NZD Billion),2011–2015
Table 21: New Zealand Non-Life Insurance – Direct Written Premium by Category (NZD Billion), 2015–2020
Table 22: New Zealand Property Insurance – Direct Written Premium (NZD Billion), 2011–2015
Table 23: New Zealand Property Insurance – Direct Written Premium (NZD Billion), 2015–2020
Table 24: New Zealand Property Insurance – Loss Ratio (%), 2011–2015
Table 25: New Zealand Property Insurance – Loss Ratio (%), 2015–2020
Table 26: New Zealand Vehicle Fleet Composition, 2011–2015
Table 27: New Zealand Motor Insurance – Direct Written Premium (NZD Billion), 2011–2015
Table 28: New Zealand Motor Insurance – Direct Written Premium (NZD Billion), 2015–2020
Table 29: New Zealand Motor Insurance – Loss Ratio (%), 2011–2015
Table 30: New Zealand Motor Insurance – Loss Ratio (%), 2015–2020
Table 31: New Zealand Liability Insurance – Direct Written Premium (NZD Billion), 2011–2015
Table 32: New Zealand Liability Insurance – Direct Written Premium (NZD Billion), 2015–2020
Table 33: New Zealand Liability Insurance – Loss Ratio (%), 2011–2015
Table 34: New Zealand Liability Insurance – Loss Ratio (%), 2015–2020
Table 35: New Zealand Marine, Aviation and Liability Insurance – Claims from Marine Incidents (NZD), 2011–2014
Table 36: New Zealand Marine, Aviation and Transit Insurance – Direct Written Premium (NZD Million), 2011–2015
Table 37: New Zealand Marine, Aviation and Transit Insurance – Direct Written Premium (NZD Million), 2015–2020
Table 38: New Zealand Marine, Aviation and Transit Insurance – Loss Ratio (%), 2011–2015
Table 39: New Zealand Marine, Aviation and Transit Insurance – Loss Ratio (%), 2015–2020
Table 40: New Zealand Major Natural Hazards, 1990–2016
Table 41: Top 10 Natural Hazards in New Zealand by Economic Damage, 1990–2016
Table 42: Top 10 Natural Hazards in New Zealand by Number of People Affected, 1990–2016
Table 43: Top Natural Hazards in New Zealand by Claims, 2012–2016
Table 44: New Zealand Non-life Insurance Segment – Leading Insurers, 2015
Table 45: IAG New Zealand Ltd – Key Facts
Table 46: IAG New Zealand Ltd – Key Financials (US$ Million), 2011–2015
Table 47: Vero Insurance New Zealand Ltd – Key Facts
Table 48: Tower Insurance (NZ) Ltd – Key Facts
Table 49: FMG Insurance Ltd – Key Facts
Table 50: FMG Insurance Ltd – Key Financials (US$ Million), 2011–2015
Table 51: AIG Insurance New Zealand Ltd – Key Facts
Table 52: New Zealand – Insurance Regulatory Framework Key Features
Table 53: New Zealand – Life Insurance Regulatory Framework
Table 54: New Zealand – Property Insurance Regulatory Framework
Table 55: New Zealand– Motor Insurance Regulatory Framework
Table 56: New Zealand – Liability Insurance Regulatory Framework
Table 57: New Zealand – Capital Requirements for Establishment of Insurance Companies
Table 58: New Zealand – Corporate Tax Rates for the Financial Year 2017
Table 59: New Zealand Insurance Industry – Policies and Premium, 2011–2015
Table 60: New Zealand Insurance Industry – Policies and Premium, 2015–2020
Table 61: New Zealand Non-Life Insurance – Claims and Expenses, 2011–2015
Table 62: New Zealand Non-Life Insurance – Claims and Expenses, 2015–2020
Table 63: New Zealand Non-Life Insurance – Assets and Investments, 2011–2015
Table 64: New Zealand Non-Life Insurance – Assets and Investments, 2015–2020
Table 65: New Zealand Non-Life Insurance – Property Insurance, 2011–2015
Table 66: New Zealand Non-Life Insurance – Property Insurance, 2015–2020
Table 67: New Zealand Non-Life Insurance – Motor Insurance, 2011–2015
Table 68: New Zealand Non-Life Insurance – Motor Insurance, 2015–2020
Table 69: New Zealand Non-Life Insurance – Liability Insurance, 2011–2015
Table 70: New Zealand Non-Life Insurance – Liability Insurance, 2015–2020
Table 71: New Zealand Non-Life Insurance – Marine, Aviation and Transit Insurance, 2011–2015
Table 72: New Zealand Non-Life Insurance – Marine, Aviation and Transit Insurance, 2015–2020
Table 73: Insurance Industry Definitions

List of Figures

Figure 1: New Zealand Real GDP (NZD Billion), 2011–2020
Figure 2: NZD – US$ Exchange Rate, 2011–2020
Figure 3: New Zealand Consumer Price Inflation (%), 2011–2020
Figure 4: New Zealand Current Account Balance as Percentage of GDP (%), 2011–2015
Figure 5: New Zealand Current Unemployment Rate, 2011–2020
Figure 6: New Zealand Population by Age Group, 1990–2025
Figure 7: New Zealand Non-Life Insurance Penetration – Regional Comparison (%), 2015
Figure 8: New Zealand Insurance Segment Direct Written Premium Shares – Regional Comparison (%), 2015
Figure 9: New Zealand Non-Life Insurance – Gross Written Premium (NZD Billion), 2011–2020
Figure 10: New Zealand Non-Life Insurance – Penetration (%), 2011–2020
Figure 11: New Zealand Non-Life Insurance – Premium per Capita (NZD), 2011–2020
Figure 12: New Zealand Non-Life Insurance – Paid Claims (NZD Billion), 2011–2020
Figure 13: New Zealand Non-Life Insurance – Profitability Ratio (%), 2011–2020
Figure 14: New Zealand Non-Life Insurance – Total Assets (NZD Billion), 2011–2020
Figure 15: New Zealand Non-Life Insurance – Total Investment Income (NZD Billion), 2011–2020
Figure 16: New Zealand Non-Life Insurance – Investment Portfolio (NZD Billion), 2011–2020
Figure 17: New Zealand Non-Life Insurance – Investment Portfolio Dynamics by Category, 2011–2020
Figure 18: New Zealand Non-Life Insurance – Direct Written Premium by Category (NZD Billion), 2011–2020
Figure 19: New Zealand Non-Life Insurance – Direct Written Premium Dynamics by Category, 2011–2020
Figure 20: New Zealand Property Insurance – Construction Value Output by Category (NZD Billion), 2011–2015
Figure 21: New Zealand Property Insurance – Direct Written Premium (NZD Billion), 2011–2020
Figure 22: New Zealand Property Insurance – Earned Premium, Incurred Loss and Loss Ratio (NZD Billion and %), 2011–2020
Figure 23: New Zealand Motor Insurance – Vehicle Fleet, 2014–2015
Figure 24: New Zealand Motor Insurance – Direct Written Premium (NZD Billion), 2011–2020
Figure 25: New Zealand Motor Insurance – Earned Premium, Incurred Loss and Loss Ratio (NZD Billion and %), 2011–2020
Figure 26: New Zealand Liability Insurance – Direct Written Premium (NZD Billion), 2011–2020
Figure 27: New Zealand Liability Insurance – Earned Premium, Incurred Loss and Loss Ratio (NZD Billion and %), 2011–2020
Figure 28: New Zealand Goods Exports and Imports (US$ Billion), 2011–2015
Figure 29: New Zealand Marine, Aviation and Transit Insurance – Direct Written Premium (NZD Million), 2011–2020
Figure 30: New Zealand Marine, Aviation and Transit Insurance – Earned Premium, Incurred Loss and Loss Ratio (NZD Million and %), 2011–2020
Figure 31: New Zealand – Frequency of Hazards by Type, 1990–2014
Figure 32: New Zealand Mortality by Hazards Type, 1990–2014
Figure 33: New Zealand Economic Loss by Hazards Type, 1990–2014
Figure 34: New Zealand – Insurance Supervision and Control at Various Levels
Figure 35: New Zealand – Insurance Regulatory Frameworks for Company Registration and Operation