Life insurance payouts hit new $1 billion high

Insurance Savings & Insurance Association chief executive Peter Neilson said the latest results, for the year ended June 30, 2011, provide a clear example of the value the life insurance sector provides to individuals, families and the wider New Zealand economy.

"To be able to make such a large contribution to the financial wellbeing of Kiwis is really pleasing," Neilson said.

"While the circumstances surrounding these payments are often extremely sad, our policyholders are able to use the financial support we give them to reduce debt, pay for treatment, cover for lost income, and generally make things just a little bit better."

Neilson said that while the $17 million in life, income protection and redundancy insurance claims resulting from the Christchurch earthquake had a significant part to play in the result, the total level of benefits paid had actually increased $100 million over the last year.