Interesting Insurance Statistics
House and Contents Insurance premiums to rise significantly
Mainly due to the financial implications on insurers following the Christchurch earthquakes there are set to be some major premium increases for house and contents insurance. Here are the average increases you are likely to see on your next renewal notice;
AA Insurance - 50% on house, nil on everything esle (contents and car)
AMI Insurance - 27% on house, 12% on contents
IAG (State and NZI mainly) - 15-30% on house, 4-16% on contents
Tower Insurance - 25% on house and contents
Source NZ Herald 23 January 2012
Did you know?
The World Economic Forum estimated the cost over the next 20 years of the top 5 chronic diseases - cancer, diabetes, mental illness, heart disease and respiratory disease - to be US$47trillion.
Source: Health Funds Association of New Zealand, September 2001
Insurance and Savings Ombudsman statistics for 2010 - 2011
The Insurance and Savings Ombudsman (ISO) is one of New Zealand's leading insurance dispute resolution services.
in 2010 - 2011 they handled 1626 enquiries with 250 formal complaints received against insurance companies or other members of their service, such as Insurance Brokers. So, if you have a dispute against your insurer or advisor it is important to know that a resolution service is available (it may be the ISO or possibly another accredited service provider) to assist you to get an outcome.
The ISO decisions are binding on the insurance providers involved and it is a free service to consumers.
NZ Health Insurance - what is the cost of good health?
A recent survey (Health Funds Association of New Zealand Annual Report 2009) found that 73% of adults in New Zealand would not be able to afford elective surgery costing $5000 or more. Even when a condition is not life threatening , not being able to get the treatment you need straight away could have a huge impact of your life. Here are some indicative costs of surgery (source; Accuro Health Insurance claims experience 2011);
Total knee replacement $19,000 - $26,000
Colonoscopy $1500 - $2800
Radical mastectomy $8300 - $10200
Prostrate removal $10000 - $15000
Cardiac bypass $37000 - $50000
Motor Vehicle windscreen claims a high percentage of all claims
At Tower Insurance 43% of all their vehicle claims are for cracked windscreens. Ensure your motor vehicle insurance has automatic windscreen cover where you do not have to pay an excess or lose your no claims bonus, if it does not then consider Tower for your motor insurance. (Stats valid as at August 2011)
Large numbers of Life Insurance payouts following the Christchurch earthquake
Numbers just released from the Investment, Savings and Insurance Association (ISI) show that 63 Life Insurance claims totalling $12.5million were paid out for people who lost their lives in the magnitude 6.3 quake. This is an average of $199,000 per claim.
There have also been 180 claims for redundancy, 16 for income protection and two for trauma insurance or total permanent disability.
The ISI Chief Executive was quoted as saying 'Hopefully the February earthquake will help more people realise that life insurance can be an important part of their family's financial protection, and that they can trust their life insurer will be there for their family when tradegy strikes'.
Potential rehabilitation timeline where you have health insurance and where you do not
Where you have private health insurance you can reasonably expect to have the following within 2-3 months; GP visit, Specialist visit and possible treatment, Treatment (maybe surgery), rehabilitation and back to work.
Without health insurance you could reasonably wait up to 6 months to see a Specialist and a further 6 months to have the surgery completed. This is based on the Ministry of Health's elective surgery measurement targets at www.electiveservices.govt.nz
Long delays for bowel cancer patients
A study of 2001 and 2005 Auckland bowel cancer patients, who mainly had surgery, found;
47% received treatment within 31 days of referral the specialist
21% waited 32 to 62 days
32% waited more than 62 days
Why wait more than 32 days when with health insurance you could be seen far more promptly so that treatment could be commenced much earlier if it is required.
Health Insurance payouts in the 12 months to December 2010 are $825 million
Health Insurance claims paid in the December 2010 quarter totalled $208 million, taking the total claims paid in the 12 months to December 2010 to $825 million. This is an increase of $60 million or 7.9% on the total claims paid in the 12 months to December 2009.
Source: HFANZ, December statistics 2010
Hospital waiting lists - some recent statistics
The waits?
First specialist assessment: 11-15% of people waited more than 6 months
Elective surgery: 11-12% of people waited more than 6 months
Elective medical procedures: 4-9% of people waited more than 6 months
Source: NZ Herald 17 February 2011
Consider these costs of medical treatment if you are wondering if health insurance is worth it
- Wisdom Teeth removal - surgical removal of wisdom teeth $2,500 - $3,500
- Angiogram - An x-ray test using a coloured dye to take pictures of the blood flow within an artery $4,200 - $10,000
- Prostrate removal - surgical removal of the prostrate gland $7,000 - $12,000
- Total knee replacement - replacement of the knee with an artificial joint $13,000 - $20,000
- Removal of the appendix $6,000 - $10,300
Source: Health Funds Association of New Zealand, March 2006
Who claims for Health Insurance?
- 50% of health insurance claimants are aged 30-59
- The most common procedures for men aged 30-49 are cancer related eg skin, prostrate or colon cancer
- Two of the largest claims made in one year were for spinal procedures and the claimants were both age 15 at the time of claim
- The most common surgical treatments for children are tonsils, adenoids and the insertion of grommets into ears
Trauma Insurance / Critical Care Insurance pays a lump sum on diagnosis of serious cancers and many other serious illnesses
309 people are diagnosed with cancer each year in NZ for every 100,000 people, the fourth highest rate in the world after Australia, Ireland and Denmark.
Source: NZ Herald article 29 January 2011
Every day about 22 people in NZ have strokes (about 8,000 people per year). Source: NZ Stroke Foundation. The University of Auckland has revealed a 40% decline in the number of death after stroke in the total population of Auckland, over the last 25 years. However, as the death rate declines, there has been a significant increase in the number of patients suffering from an impaired level of consciousness and mobility follwing a stroke. Trauma Insurance is the ideal insurance in this instance. Source: The George Institute for International Health, in collaberation with Auckland City Hospital amd the University of Auckland, 2007
Southern Cross Health Insurance most common claims in the year to 30 June 2010
The removal of skin lesions is Southern Cross Health Society's most commonly claimed health insurance claim for elective surgical procedure. In the year to 30 June 2010 the Society funded or part-funded nearly 31,000 skin surgeries for its 840,000 members.
Source: Southern Cross Health Society, January 2011
Some extreme reasons for calling your boss about unplanned leave
- My dog has fallen and broken all its legs
- I have been away for the weekend and need to stay at home because my cat has missed me
- I cannot find my shoes
- I forgot I worked here
- I'm locked in the house
- I cannot afford the bus because you do not pay me enough
- My car has frozen to the ground
Trauma / Critcial Care Insurance statistics. 3 big reasons to buy Trauma Insurance
7 women a day are diagnosed with breast cancer. Source: The New Zealand Breast Cancer Foundation
50% or more of people with cancer will be long term survivors. Source: Cancer Society of New Zealand
20 New Zealanders, on average, have a stroke every day, 25% of which are under 65. Source: Stroke Foundation of New Zealand
Trauma Insurance pays a lump sum (you choose the level of cover required) if you are diagnosed with one of the serious illnesses covered by the policy.
The Cost of Health
$1373.10 per day - medical or surgical ward stay
$1215.55 - clinical assessment and treatment for more than 10 hours, adults emergency department
$40.25 a minute - general rate for operating rooms and anaesthesia
$189.75 for 15 minutes - surgical staff
$238.05 - blood transfusion, per unit
$6602.15 - renal stones removal
Would you rather your health insurance pay this for you?
Source: Auckland District Health Board's schedule of fees. GST included
Life Insurance - to ensure the future welfare of your loved ones
Life Insurance - more reasons to have
16 New Zealanders die every day from coronary heart disease (Source: Heart Foundation)
1 in 10 women will get breast cancer in their lifetime and a quarter will die from the disease (Source: The NZ Breast Cancer Association)
How much would it cost for some common surgical treatments?
Spinal fusion - an operation to join two or more vertebrae together $19,900 to $25,900
Hernia Repair - procedure required if part of the intestine bulges through a weakness in the abdominal wall $5000 to $10000
Endoscopic (sinus) surgery - the use of tiny instruments to view and repair the sinus $6400 to $18000
CT Scan $1300 to $1700
Removal of the appendix $6000 to $10300
(Source: Health Funds Association of NZ, heathfunds.org.nz, March 2006)
Trauma Insurance is quickly becoming a must have insurance type
Some more reasons for trauma insurance
25% of stroke sufferers will be under 65 (Source: Stroke Foundation of New Zealand)
2479 new breast cancer registrations with 647 deaths from the disease in one year (Source: NZ Health Information Service, Cancer: New Registrations and Deaths Report 2005)
Younger people are having heart attacks which have implications for jobs and family life (Source: Cardiologist John Elliott, Christchurch Press, 27 October 2006)
Examples of recent Life Insurance claims from a major NZ insurer
Example life insurance claims
Male, age 64, Liver failure, Amount paid $678,230
Male, 50, Bowel cancer, $500,000
Male 49, Drowning, $253,750
Female, 39, Gastric cancer, $308,100
Male, 39, Lymphoma of the stomach, $260,099
Female, 37, Inoperable tumour, $305,895
Male, 26, Malignant melanoma, $253,845
How much does it cost for some surgical procedures?
Cardiac bypass: An operation to rechannel blood flow through the heart $30,000 to $40,000
Hip replacement: Replacement of the hip with an artifical joint $15,000 to $22,000
Varicose veins (both legs): Surgical removal of varicose veins $6,000 to $9,000
Thyroidectomy: Surgical removal of the thyroid glands $5,500 to $9,000
Prostate removal: Surgical removal of the prostrate gland $8,000 to $13,000
Colonscopy: The use of tiny instruments to view the inside of the colon $1,450 to $1,600
Source: Health Funds Association of New Zealand - indicative costs of surgery, February 2008
3 more good reasons to have Health Insurance
More reasons to have Health insurance
Heart Surgery waiting lists have doubled in the last five years (Source: Wairarapa Times, March 2009)
More than 2,896 people did not receive treatment within six months, despite being given a commitment to treatment (Source: www.electiveservices.govt.nz)
An average of 4,726 people a month have been waiting longer than six months for their first specialist assessment through the public health system (Source: www.electiveservices.govt.nz)
Why do so few people have adequate levels of life Insurance?
An estimated 93% of private motor vehicles are insured in New Zealand yet studies in to the life insurance industry have found that two out of three New Zealand families have no life insurance cover or have inadequate cover. Furthermore almost half have no life insurance, health insurance, income protection or trauma insurance at all.
Good reasons to consider Disability Income Insurance
Five in 10 males and seven in 10 females are likely to beome disabled due to an illness or accident before they turn 65, preventng them form working for at least a month (Source: Davies Financial and Actuarial Ltd).
One in nine men and one in five women will be disabled and off work for more than 12 months before age 65 (Source: Insurance Alert, Winter 2000).
What are the chances of surviving a critical illness?
One in five men and one in seven women between the ages of 30 and 64 will suffer a critical illness (a potential trauma insurance claim) (Source: Gen Re LifeHealth 'Australian Critical Illness survey 2008')
In 2005, there were 18,610 new Cancer cases and 7970 Cancer deaths in New Zealand (Source: New Zealand Health Information Service - Cancer: New registrations and deaths, 2005)
52% of male and 59% of female Cancer patients will recover and be alive 5 years later (Source: South Australian Cancer Registry, 2003)
Life Insurance statistics demonstrate that the unexpected does happen
Reasons for Life insurance
On average there is one death in New Zealand every 19 minutes (Source: Statistics New Zealand, New Zealand Life tables, June 2007)
Stroke and Heart Disease accounted for 38% of all deaths in New Zealand in the 2005 /2006 period (Source: Statistics New Zealand (2009)
In 2005 28% of cancer-related deaths were of people aged between 25 and 64 (Source: Mortality and Demographic data, New Zealand Health Information Service, 2005 (provisional data)
1.38 million people now have health insurance
Over 1.38 million people in New Zealand now have health insurance. That is close to 1 in 3 New Zealanders who chose to have their medical care funded privately rather than relying on the already stressed public health system.
Source: Health Funds Association of New Zealand report 2010
Health Insurance claims increase significantly in year to 30 June 2010
Heath Insurance companies paid 10.1% per cent more in claims in the year to the end of June 2010 ($797million) than they did for the same time the year before. Around 80 per cent of the value of claims paid related to elective surgery and associated costs.
Source: Health Funds Association of New Zealand, August 2010