New Zealand’s modern take on health insurance

Studies are showing kiwis are becoming more conscious about their health. Whether it’s the emergence of face masks, the increase in gym memberships or the decrease in smoking, New Zealanders are taking a more proactive approach to keeping healthy. With the access to medical care it provides, health insurance can prove vital to one’s wellbeing – but do Kiwis view it as necessary?

What Kiwis think about health insurance

A recent Financial Services Council report has revealed New Zealanders are becoming increasingly aware of the importance of health insurance, falling in line with global trends. The report states that 1.45 million Kiwis were protected by health insurance in 2023, a 1.2% yearly increase. Out of 9,065 Kiwis surveyed in the report, 37% reported having health insurance, with nearly 60% of respondents citing peace of mind as the reason why.

A more modern understanding of health is a large reason behind this increase. Data finds claim levels start from birth and rise steadily to the 60-64 age group, indicating all age groups can benefit from health insurance.

Mental health concerns on the rise

Another significant shift is how New Zealanders perceive mental health. Conditions such as anxiety and depression are some of the greatest health concerns for many New Zealanders, and studies show it disproportionately affects young people.

Recent findings suggest that nearly 40% of those aged 18-43 years old consider mental health their main concern. This surpasses other important health issues such as oral health, nutrition, COVID-19, and cancer. The impact this has on the health system is crucial – in New Zealand, one in five adults are diagnosed with mood or anxiety disorders.

Health insurance is beneficial in providing coverage for those seeking mental health support, allowing people to get the help they need.

Aging populations adding to the strain

The World Health Organisation has reported life expectancy is increasing faster than ever, with advancements in medicine, transport, and technology contributing to rapidly ageing populations across the globe. The average life expectancy of New Zealanders has also risen – from 71 years in 1960, to 82 years in 2021. To put this in perspective, the average global life expectancy in 1960 was just 51 years old.

As population levels also rise, health systems globally feel the strain of this demographic shift. Research suggests the average person spends about half their life in less than good health, with about 12% of that in poor health. Ageing populations have yet to change this ratio, meaning health systems are supporting more people who are spending more time in poor health.

The amount of New Zealanders over 65 is expected to double by 2050. This, along with the increase in health insurance coverage, shows Kiwis are starting to value their health span just as highly as their life span. Older people play an active part in society, and insurance plays an important role in a healthier ageing population.

The growing gap in healthcare

Health insurance is vital to the health ecosystem of New Zealand, and having more people on private coverage generally means there is less pressure on services provided through public healthcare. Roughly half of all elective surgery in New Zealand is covered by private health insurance, providing a safety net for those who could otherwise face delays in accessing treatment, or paying for expensive specialist and surgical treatments themselves, if they don’t want to wait on a public waiting list.

Global trends reveal a widening health protection gap, where the necessary coverage for a sustainable health system falls short of the actual insurance purchased. Despite more people being covered, this gap persists, largely due to the pressure of ageing populations and strained public healthcare systems.

Protecting health and wealth, with the right advice

If you’ve been considering buying health insurance (or changing your healthcare plan), reach out to your insurance adviser. With comprehensive, major and minor medical insurance available, the right package depends on your situation. Your adviser can walk you through this, identify your options, and find the right solution for your needs and objectives.