Do insurance claims get paid?
There’s a persistent myth in New Zealand that insurance claims, especially health-related ones, often go unpaid. At RIVAL Wealth, we hear this concern regularly, and we want to set the record straight: the vast majority of insurance claims in New Zealand are paid out. In fact, the data tells a very different story from what the myth suggests.
Let’s look at the facts:**
- AIA New Zealand paid out $829.6 million in claims in 2024, a $95 million increase from the previous year. This included significant payouts across life, health, and trauma insurance.
- Chubb Life paid 96% of all claims received in 2024, with cancer and musculoskeletal conditions being the most claimed for under different types of cover.
- Southern Cross total claims paid: $1.706 billion was paid out in claims from $1.816 billion received in premiums for the year ending 30 June 2025. That’s 94 cents of every premium dollar returned to members, one of the highest payout rates in the industry and up from 93.4 cents the year before.
- Partners Life paid out over $250 million in claims for the year ending March 2024, with 93% of claims accepted, including payouts for life, trauma, income and disability, and private medical cover.
- Asteron Life paid out 97% of all trauma, life, and income protection claims between July 2023 and June 2024.
Health and mental health claims are on the rise
Health insurance claims are increasing, not because they’re being denied, but because more people are using their cover. AIA NZ alone paid $25.7 million in mental health-related claims in 2024, with depressive and anxiety disorders being the most common. This reflects a growing awareness and willingness to seek help, something insurance is designed to support.
Why the myth persists
So why do people still believe claims don’t get paid? Often, it comes down to:
- Misunderstanding policy wording or exclusions
- Lack of support during the claims process
- Hearing isolated negative stories that don’t reflect the broader reality
How RIVAL Wealth supports you at claim time
At RIVAL Wealth, we don’t just help you choose the right cover, we stand by you when it matters most. We act as your advocate during claim time, handling communication with the insurer, helping you gather the right documentation, and ensuring your claim is processed smoothly and fairly. Our clients often tell us that having us in their corner made all the difference. We know the system, we speak the language, and we’re here to make sure you get what you’re entitled to.
Final thought
Insurance is about peace of mind, and the truth is, New Zealand insurers are paying out claims, consistently and reliably. With the right advice and support, you can trust that your cover will be there when you need it most. If you have questions about your cover or want to know how we can support you through a claim, get in touch with the RIVAL Wealth team today.
This information is of a general nature and is not intended as personalised financial advice. RIVAL Wealth is a Financial Advice Provider (FAP) licenced by the Financial Markets Authority to provide financial advice. Our disclosure document is located at rivalwealth.co.nz or a written copy is available on request
