High levels of household indebtedness limits spending on life insurance and other financial products deemed non-essential by many New Zealand residents. We take the view that life density will continue to grow; however, at the end of the forecast period it is likely to be around USD--- per capita, up from USD--- in ----. ...We take the view that life density will continue to grow; however, at the end of the forecast period it is likely to be around USD--- per capita, up from USD--- in ----. Short-term currency fluctuations mean we expect to see premiums contract in US dollar terms until end of ----; however, in local currency terms, growth is expected to be relatively solid at -.- annually on average, reflecting our forecasts for steady domestic economic growth. This rate of premium growth, combined with low penetration of life insurance products, will provide opportunities for local and international insurers looking to increase their exposure to the New Zealand life insurance sector. ...The average life expectancy age, already one of the highest globally, is set to increase slightly from --.- to --.- years between ---- and ----. As average life expectancy increases, the proportion of the over --
...� Business Monitor International Ltd Page - population will also increase, offering an opportunity for life insurers to benefit from an increasingly older demographic. We are forecasting that by ----, the over -- bracket will increase to represent --.- of the population. ...We are forecasting that by ----, the over -- bracket will increase to represent --.- of the population. Official responses to the ageing of the population, and the consequent implications for the costs of pensions which are paid out of ongoing revenue, have included the successful promotion of KiwiSaver funds, to which employers and employees contribute. The New Zealand Superannuation Fund is a sovereign wealth fund which exists to ensure that the government will be able to bear the fiscal burden of the pensions in coming decades. ...We believe that growth in household income will generate and support our view of the growth in the life insurance industry. As over ---,--- households will have income over USD--,--- by end of ----, the country will witness a rise in both savings and sustained demand for life insurance.
...New Zealand s life insurance market is less than half the size of the non-life segment, with gross life premiums representing around -- of overall insurance premiums written in the country each year. This differential reflects the relatively high standard of public healthcare and other forms of social security in the country which have undermined demand for private retirement products and other traditional life insurance products. ...
