New Zealand’s life insurance market is projected to grow from NZ$5.9bn (US$3.35bn) in 2024 to NZ$8.3bn (US$4.73bn) by 2029, with a compound annual growth rate (CAGR) of 7.0% in gross written premiums (GWP), according to GlobalData.
Growth in the sector is being driven by rising demand for whole life and personal accident and health (PA&H) insurance, along with greater awareness of protection policies. In 2025, the market is expected to reach NZ$6.4bn in GWP, reflecting annual growth of 8.2%.
According to GlobalData’s Insurance Database, this growth is attributed to an ageing population, rising health awareness, and the increasing cost of living, which is heightening the need for financial protection.
Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, noted that economic recovery, easing inflation, and increased private investment will further support life insurance demand, despite challenges such as high unemployment and inflation.
Global Data noted that PA&H insurance, the largest life insurance segment, accounted for 65.3% of total life insurance GWP in 2024. The segment is expected to grow at a 6.9% CAGR from 2025 to 2029, driven by rising healthcare costs and a 10%-15% increase in premium prices in 2024. Data from the Financial Services Council (FSC) indicates that the proportion of New Zealanders with health insurance rose from 32% in 2022 to 37% in 2023, reflecting increased concerns over access to quality healthcare.
Term life insurance, which holds a 27.8% share of life insurance GWP in 2024, is projected to grow at a 6.4% CAGR from 2025 to 2029. Sahoo highlighted its affordability and popularity for covering mortgages and personal loans, stating, “As a result, despite economic challenges, term life insurance remains resilient.”
Meanwhile, Whole life insurance, the third-largest segment, accounted for 3.8% of total life insurance GWP in 2024. However, it recorded a notable 19.2% CAGR from 2020 to 2024 and is forecast to grow at an 8.0% CAGR over 2025–2029, supported by increasing demand for whole life policies.
Addressing the market outlook, Sahoo warned that the rising cost of living could constrain growth, urging insurers to “introduce innovative products and leverage digital technologies to make insurance more affordable and accessible.”
