Fidelity Life has reported $247.7 million in claims payments for the year to June 30, 2025 (FY25), alongside a 93% acceptance rate on new claims. The New Zealand life insurer said it paid claims to 2,279 customers during the 2025 financial year and spent $772,000 on rehabilitation support. Since its establishment 52 years ago, the company has paid more than $2 billion in claims.
Seema Bangera (pictured), chief claims officer at Fidelity Life, noted that the $2 billion in total claims paid reflects the scale of the business since it was founded by Gordon Watson. “Reaching the $2 billion milestone is something our founder, Gordon Watson, would be incredibly proud of. It’s a testament to the trust New Zealanders have placed in us for more than five decades, and we’re proud to stand alongside our customers and advisers to make a meaningful difference,” Bangera said.
Fidelity Life’s latest claims snapshot shows cancer remained the largest single category, accounting for 33% of accepted claims. Within that group, breast cancer represented 20%, prostate cancer 11%, and lung cancer 9% of cancer-related claims.
Cardiovascular conditions made up 14% of overall accepted claims, with heart attacks comprising 36% of that segment and heart failure 13%. Injuries affecting bones, muscles, limbs, and joints accounted for 15% of total claims, including knee-related claims at 8% and ankle fractures at 7%.
Neurological conditions represented 10% of claims, led by stroke at 36% and dementia at 17% of claims within that category. Respiratory conditions were responsible for 7% of claims, with pneumonia at 53% and chronic obstructive pulmonary disease (COPD) at 9%. Other organ disorders accounted for 3% of claims, driven largely by renal failure (29% of those claims) and multiple organ failure (22%).
The insurer reported allocating $772,000 in FY25 to rehabilitation support linked to claims, focused on recovery and return-to-work programmes. “Behind every statistic is a customer who trusted us to be there when it mattered most. That trust drives us to continually improve our processes and invest in tools, training, and support for advisers and customers alike,” Bangera said.
While Fidelity Life’s figures provide one view of current claims experience, new research indicates the broader New Zealand life market is also projected to grow. According to GlobalData, New Zealand’s life insurance market is forecast to increase from $5.9 billion in gross written premiums (GWP) in 2024 to $8.3 billion by 2029, a compound annual growth rate of about 7%. The firm projects that GWP will reach $6.4 billion in 2025, an estimated year-on-year increase of 8.2%.
GlobalData links the forecast growth to higher demand for whole life products and personal accident and health (PA&H) cover, as well as greater take-up of financial protection products. Demographic and economic factors – including an aging population, rising healthcare expenditure, and concerns about financial security amid cost-of-living pressures – are also identified as key drivers.
