by Rob Hosking
American International Assurance (AIA) is preparing a nationwide survey of the country’s insurance cover.
AIA’s national marketing manager Michael Hewes says the aim is to eventually raise awareness of insurance cover.
"There’s not enough touch-points for a consumer to go through where they say 'crikey I need life insurance' or some other sort of insurance," he says.
That makes it hard for the insurance brokers to sell their product. The most typical is when people take out a mortgage, he says.
“We also have a problem at the moment because the industry is faced with the rampant consumer spending of the past few years. People have been spending up on black and white goods.
“For a lot of people its more attractive to have a Sony flatscreen TV than it is to have good insurance cover.”
The Australian Investment and Financial Services Association recently carried out a survey which showed underinsurance to the value of A$1.3 billion. However that only covered life insurance.
Hewes says the AIA survey will take as a starting point recent AC Nielsen data on insurance cover in New Zealand. That survey showed just 39% of New Zealanders hold a life insurance policy; 30% have health cover, and just 11% have disability and/or income protection insurance.
There is also a huge ethnic imbalance – 72% of all Europeans have life cover, while only 9% of Maori have it. It’s a similar story with health insurance – 73% of Europeans; 6% of Maori – and disability/income protection – 79% European; 7% Maori.
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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