AIA New Zealand has rolled out a new health insurance benefit, AIA Living Specialist and Testing Support (STS), designed to provide access to specialist consultations and diagnostic procedures without requiring a full health insurance policy.
The benefit, available from Oct. 1, is intended to address the ongoing challenges of affordability and accessibility in the local health insurance market.
Recent data from the Financial Services Council (FSC) highlights persistent underinsurance in New Zealand. The FSC’s “Money & You: Managing Risk Through Challenging Times” report from November 2024 indicates that only 39% of New Zealanders have health insurance and 41% have life insurance.
The report notes that increasing living costs have influenced many individuals’ decisions regarding insurance coverage.
The launch of STS comes at a time when New Zealand is experiencing a sharp rise in medical costs. According to Aon plc’s 2025 Global Medical Trend Rates Report, the country’s medical trend rate has nearly doubled, from 7.4% in 2024 to 14.5% in 2025. This places New Zealand among the highest in the Asia-Pacific region for medical inflation, second only to Kazakhstan.
STS is structured as an add-on to eligible AIA Living policies, including life, trauma, income protection, and total permanent disablement (TPD) cover, subject to certain qualifying criteria.
The benefit provides up to $10,000 per year for specialist consultations and up to $100,000 per year for diagnostic tests and procedures. After two years, policyholders may also access up to $1,500 for obstetric and infertility-related care.
Additional features include a health screening allowance – $500 for standard members and $750 for AIA Vitality members – available every three years. Customers can choose between a $0 or $250 excess to help manage premium costs.
Alex Kühnast, chief product & marketing officer at AIA NZ, said accessing healthcare promptly can significantly impact outcomes for individuals.
“With STS, we’re giving customers a way to access specialist support and diagnostic testing earlier, helping them take the next step toward treatment with confidence,” he said.
Kühnast emphasised that the new benefit is designed to serve a broad customer base, from those new to insurance to individuals seeking to control their healthcare expenses.
The introduction of STS is partly in response to growing pressure on the public health system, which has led to longer wait times and delayed diagnoses.
By offering a standalone specialist and testing cover, AIA NZ aims to provide an option for those reconsidering private health insurance due to rising costs, as well as to respond to adviser requests for more flexible products.
“This benefit is about meeting people where they are. It complements our public health system and can help ease pressure on it, while giving customers more choice and control,” Kühnast said.
AIA NZ claims that no other insurer in the country currently offers a similar standalone benefit. The company sees STS as a tool for retaining customers who might otherwise cancel their private health insurance and as a response to evolving market needs.
The introduction of STS reflects a broader trend in the insurance sector, with providers seeking to adapt to economic pressures and shifting consumer expectations.
As medical costs continue to climb, such products may become increasingly relevant for both insurers and policyholders in New Zealand.
