New Zealanders ponder their financial situations in the wake of catastrophic weather events
The “rainy days” have prompted New Zealanders to think more about their financial situations, early data from the Financial Services Council’s (FSC) 2023 Financial Resilience Index research showed.
The survey, which monitors relevant trends in addition to tracking five key indicators: financial confidence, financial literacy, financial preparedness, job security, and wellbeing, found that the recent weather events have prompted 76% of New Zealanders to think about how they protect themselves and their families.
Although 32% of those respondents stopped there, 16% reported actively reviewing their financial situation, and 29% said they started a conversation about their financial situation with their family.
“Pandemics, cost-of-living crises, and cyclones are – sometimes quite literally – the rainy days that prompts us to think about how we protect ourselves when things go wrong,” FSC CEO Richard Klipin (pictured above) said. “The upside is that now more of us are thinking and having conversations about how we manage risk, which is vital in this time of economic uncertainty.”
This rethinking risk has also translated into increasing reported levels of insurance since 2022:
- 39% report having life insurance (up 1%)
- 37% report having health insurance (up 5%)
- 22% report having trauma and critical illness (up 4%)
- 20% report having income protection insurance (up 9%)
- 17% report having total and permanent disability (up 3%)
“These rises are likely a reflection of the instability of the past few years, with the world experiencing several ‘black swan’ events in the form of COVID-19 and a global economic slowdown creating tough times for many people and businesses,” Klipin said.
“If there’s a silver lining to the past few years, it’s that these events are starting more conversations in households and encouraging New Zealanders to take steps to manage their financial wellbeing.”
“This is important as life and health insurance sector pay outs remained high across 2022. Life insurers paid out $1.06 billion in claims, while health insurers paid out $1.41bn in claims. Claims support Kiwis in their times of real need and stress.”
“While the Financial Resilience Index’s early finds are encouraging, we still have a long way to go. Our work as an industry doesn’t stop until we’ve significantly lifted the financial confidence and wellbeing of all New Zealanders.”
The full Financial Services Council’s 2023 Financial Resilience Index research report with deeper insights across the financial services industry will be released on May 3.
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