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:**

• 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.
• Partners Life paid out over $300 million in claims for the year ending March 2025, with 95% of claims accepted, including payouts for life, trauma, income and disability, and private medical cover.
• AIA New Zealand paid out $790 million in claims in 2025 and accepted 91% of all claims received.
• Asteron Life paid out $117.9 million in claims for the 2025 financial year and achieved a combined claims acceptance rate of 98%.
• 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.

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, which is precisely what insurance is designed to support.

• Why the myth persists often 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

** Source of statistics