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Global trends, local responses: Influencing New Zealand’s insurance industry

Global trends are not merely abstract concepts, they are having a tangible impact on the New Zealand insurance sector. There is a pressing need to respond to the wave of transformation driven by technological advancements, evolving customer expectations, and external influences such as climate change and regulatory changes.

The 2025 Deloitte Global Insurance Outlook report provides a comprehensive analysis of these trends and offers strategic insights to help insurers navigate global trends with specific implications for the New Zealand market.

Technological transformation

The global insurance landscape is being reshaped by digital transformation, particularly through data analytics and generative AI. These technologies enable insurers to improve risk assessment, streamline claims processing, and enhance customer service.

New Zealand insurers are also adopting these advancements to remain competitive. Through technological transformation, insurers are enhancing operational efficiency, refining risk management processes, and providing a personalised service experience. Keeping up with this global trend is crucial to meet rising expectations of tech-savvy consumers and maintain competitiveness.

Evolving customer expectations

There is a global shift towards more personalised and accessible insurance products. Embedded insurance, which integrates insurance offerings at the point of sale, is becoming increasingly popular and is projected to exceed $722 billion (USD) in premiums globally by 2030. Consumers now demand seamless, integrated coverage options that fit naturally into their purchasing journeys.

To meet these evolving expectations, New Zealand insurers are modernising their systems and leveraging digital distribution channels. They are utilising technology to offer personalised services and improve customer engagement while exploring strategic partnerships with industries to broaden their distribution options and enhance customer satisfaction.

Climate change and sustainability

The rise in the frequency and severity of climate events are putting pressure on underwriting and reinsurance models. Insurers are forced to reassess their risk exposure and pricing strategies to account for the heightened unpredictability of natural disasters.

New Zealand’s vulnerability to natural disasters underscores the importance of adopting sustainable business practices and integrating comprehensive climate risk assessments into operational frameworks. There is a real opportunity for local insurers to innovate and collaborate to balance equity and resilience. Nature-based solutions will play a key role as insurers support consumer behaviour change to build resilience.

Regulatory changes and compliance

New global tax rules, such as the Pillar Two tax laws, and enhanced regulatory scrutiny on data privacy and AI usage are reshaping the insurance landscape. Insurers must navigate these complex regulations to maintain compliance and protect consumer trust.

In response, New Zealand’s insurance industry is strengthening its compliance strategies and governance frameworks. By implementing robust data protection measures and ethical AI guidelines, local insurers are ensuring that their operations meet stringent global standards. These efforts not only safeguard sensitive information but also enable the responsible deployment of AI technologies, thereby reinforcing market credibility and operational integrity.

Market dynamics and growth opportunities

The global general insurance sector is showing signs of recovery, driven by digital advancements and customer-centric strategies. However, rising claims costs remain a significant challenge due to increased climate events and evolving consumer expectations.

In New Zealand, insurers are navigating these dynamics by embracing digital transformation and focusing on personalised insurance products. Digital platforms and innovative technologies are being leveraged to enhance service delivery and operational efficiency. By prioritising customer engagement and satisfaction, New Zealand insurers are positioning themselves to capitalise on growth opportunities in both general and life insurance, ensuring they remain competitive in an evolving market.

New Zealand insurers can enhance their resilience and competitiveness by strategically embracing key global trends. It will be crucial to keep up to date on technological innovation, adopt sustainable practices, and stay abreast of regulatory change. These combined efforts position New Zealand insurers to navigate the evolving global landscape effectively, achieving sustained growth and long-term success in a competitive insurance market.

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