Life insurance sales strong

“Total premiums payable for all categories of life insurance increased 9.4% to $1.544 billion in the 12 months to 31 December 2008. In the same period premiums for the popular risk products sector have grown a strong 11.9%,” says Vance Arkinstall, ISI chief executive.

He believes continued growth reflects peoples’ need to seek peace of mind in difficult economic times by “ensuring they have important protection for their families through life insurance and income protection insurance.”

However, despite continued growth, underinsurance remains a major issue in New Zealand, creating a potential burden for both taxpayers and the welfare system.

“Clearly there are many New Zealanders who do not have life insurance or have inadequate protection. In these cases if the worst should happen the cost of supporting the family and dependents falls upon the welfare system,” Arkinstall says. “In a business environment ensuring adequate cover for key staff and business partners is essential, particularly in a challenging environment when access to credit funding is not easy.”