Private health insurance membership in New Zealand - Data and Analysis (2006-2033)

IBISWorld forecasts private health insurance membership to inch upwards by 0.7% in 2025-26, to reach 1.436 million people. In New Zealand, private health insurance membership is supported by employment levels, as it is subsidised by employers. Therefore, recent pressure on employment levels will curb private insurance uptake. The high interest rate environment and inflationary pressures are set to dampen economic activity, resulting in the unemployment rate continuing to rise. Subsequently, this trend is anticipated to contribute to a modest growth in private health insurance memberships.The COVID-19 crisis led to the temporary suspension of non-urgent elective surgery to free up capacity and resources in 2020-21. In that year, some people were unable to use services that are included in their policy. Yet, these circumstances did not cause private health insurance coverage to decline across the population. To the contrary, the uncertainty of the COVID-19 pandemic has led more people to take out private health insurance over the course of the pandemic. With steady population growth, low unemployment and rising real household discretionary incomes, the number of New Zealanders with health insurance coverage has risen year-on-year to 2021-22, despite rising premiums and periods of reduced capacity to undergo elective procedures.New Zealand residents and some visa holders are entitled to healthcare, free of charge or at a low cost under a public health system. Private health insurance is primarily used by membership holders to supplement services available in the public health system. Private health insurance coverage offers consumers a range of benefits not offered by the public system, such as private hospitals and clinics, choice of doctor and shorter waiting periods.Over the past five years, the number of people with private health insurance membership has slightly dipped, but remains at a high level. The level of physical and mental health consciousness among the population has grown, supporting rising membership rates as people have taken proactive steps to look after their health. Employer-subsidised private health insurance has also driven increasing coverage over the period. Furthermore, a greater number of older New Zealanders have taken up coverage as elective surgery within the public health system has become increasingly inaccessible. However, as health insurance premiums have spiked over the past few years due to reasons like inflation-induced higher medical expenses and increased services used in the country, and real household discretionary income has stuttered in recent years, health insurers have found it more difficult to expand their coverage. Overall, IBISWorld forecasts private health insurance membership to edge downwards marginally at a compound annual rate of 0.01% over the five years through 2025-26.