AIA New Zealand disbursed $829.6 million in claims across its insurance portfolio in 2024, an increase of $95 million from the prior year, according to its latest Claims Compass publication.
The growth was driven primarily by claims in life, health, and trauma products, with inflation and healthcare costs cited as contributing factors.
According to AIA NZ chief customer officer Maddie Sherlock (pictured), the rise in claims reflects higher levels of insurance cover among customers adjusting to economic pressures.
“What we’re seeing is the impact of customers’ insurance levels increasing alongside inflation. Our products also support sum assured increases for special events like buying a house or having a baby, and for our other products increasing healthcare costs are a significant factor,” she said.
Sherlock noted that while advances in medical science offer better treatment outcomes, they often come with higher associated costs.
“While customers are seeing the benefit of advances in medical treatments, more treatment options, and improved patient experience or outcomes, these innovations are often at a higher cost than established treatments and are passed onto insurers and customers,” she said.
Demand for healthcare services also continues to grow amid an ageing population and a rise in chronic illnesses. Sherlock pointed to increased incidence of cardiovascular disease, cancer, and diabetes, compounded by changes in diet and physical activity across the population.
“These worsening public health trends lead to a higher demand for health services, which puts upward pressure on private health claims,” Sherlock said.
In a shift from the previous year’s emphasis on cancer-related claims, AIA NZ’s latest report focused on mental health, which accounted for $25.7 million in claims during 2024. Suicide-related claims represented $8.1 million of the total.
The data showed individuals aged 40 to 59 were most impacted, particularly men, who made up a large portion of claims. Those aged 40 to 49 lodged over $6.4 million in claims for mental health conditions, followed by the 50 to 59 age group with $5.6 million.
Sherlock said the figures reflect the pressures faced by people in midlife – balancing careers, finances, and family obligations. She added that this stage of life often coincides with lifestyle-related health challenges, which can further impact mental wellbeing.
“This is the age where your overall health starts to be impacted by your nutrition, sleep, and activity levels versus when you were younger. And your risk of lifestyle diseases increases. These changes can of course impact your confidence and overall mental wellbeing,” she said.
For women, perimenopause has been cited as a factor influencing mental health claims, especially as it intersects with personal and professional responsibilities.
The most common mental health claims in 2024 were for depressive disorders (44%), followed by anxiety and panic disorders (14%), post-traumatic stress disorder (4%), and smaller proportions for chronic fatigue and pain syndromes.
AIA NZ reported it invested over $1.3 million in rehabilitation services last year, with more than half of that amount directed toward mental health initiatives. These include psychological services, occupational therapy, nutritional planning, and personalised home visits – about 800 annually.
Sherlock said the insurer’s approach considers the individual’s full context, including cultural background and family circumstances.
“For example, if someone has a love of going to the gym and this is something that helps them to feel more energised, helping them build regular workouts into their ongoing plan may be relevant,” she said.
The claims update comes as AIA Group, the insurer’s Hong Kong-based parent company, posted strong Q1 2025 results. It recorded a 13% rise in the value of new business, attributed in part to demand from mainland Chinese policyholders purchasing insurance in Hong Kong. Annualised new premiums increased by 7% globally, with mixed performance across Asian markets.
Locally, AIA NZ recently announced changes to its distribution leadership. Hannah Anderson has been appointed head of retail distribution and Ben McQuay named head of corporate solutions. Both have longstanding experience within the company.
The appointments follow the departure of senior leaders Anna Schubert and Jack Newman, who served a combined tenure of nearly four decades.
