10,000 New Zealanders abandon health cover over last quarter

While the amount of lives covered has fallen by 30,000 from the December 2008 peak, the corresponding slowdown in claims has been welcomed by HFANZ.

Chief executive Roger Styles said claims costs in the year to June 2011 grew by just 3.8% on the previous year, well down on the average 9% per annum cost growth seen over the last five years.

"While it is a positive trend, it is not consistent across all claims areas. For example, anecdotal evidence suggests that there has been a significant reduction in cardiac claims but an increase on orthopedic surgery," he said.

"The lower rate of claims cost growth will be welcome news for policyholders, as premiums have been rising in response to past jumps in claims costs."