New Zealanders Are Inadequately Insured

February 18, 2013 New Zealand Finance

Insurance risksNew Zealanders need to inspect their current insurance policies and ensure that their chosen cover is adequate for them.

On February 18th the New Zealand Financial Services Council released a new study on the levels of insurance cover taken out by New Zealanders, claiming that many individuals are under-insured and some families are insured but are using a poorly chosen policy.

Overall, the study found that New Zealanders are under-insured by a total of NZD 650 billion, exposing themselves and their families to significant financial risks and hardships.

Despite the level of under-insurance, the conclusion drawn in the study is that under-insurance in New Zealand has not yet reached a crisis level, but greater consideration should be given by New Zealanders to the level and type of insurance policy they take.

Specifically, the research pointed to a current problem of individuals and families using the wrong type of insurance, with the main earner in the family often being under insured while the secondary earner is over insured.

The research noted that there are many sectors of society which have no insurance cover at all, but pointed out that this does not raise a significant risk, as these groups do not always require insurance in their current situation.
Photo by woodleywonderworks