Insurers react to proposed NZ Income Insurance scheme

The Government, Business New Zealand and the New Zealand Council of Trade Unions say the proposals are a new way of better protecting workers and the economy. It will support workers with 80% of their income for up to seven months if they lose their job through no fault of their own.

It’s expected under the proposed scheme, people will have the time and financial security to find a good job that matches their skills, needs and aspirations, or retrain for a new career.

Cigna New Zealand chief executive Gail Costa (pictured) said, “Based on the information we currently have, the proposed scheme looks to be a positive initiative that will complement the work done by our industry and the products we offer by providing a limited amount of short-term cover.”

“If adopted, the scheme won’t cover anyone’s full insurance needs, so we’d encourage people to speak with an adviser to understand how the scheme impacts them and what the right level of cover is for their needs both in the short and long-term”, she added.