Health Insurance Premiums
At AdAstra Financial Services, we recognize the challenges posed by escalating health insurance premiums. Our commitment is to provide professional advice on insurance, investment and KiwiSaver, ensuring our clients navigate these complexities effectively.
We advocate on behalf of our clients, recently engaging with the health insurance providers and current govt. representatives to highlight our concerns that health coverage could soon become a ‘luxury product’. Our goal is always to ensure that our clients receive the best possible advice and know they will be supported whether in challenging times, or prosperity.
We recently saw a recent analyses which also highlighted a significant surge in health insurance premiums in New Zealand. According to Aon’s 2025 Global Medical Trend Rates Report, New Zealand’s medical trend rate escalated from 7.4% in 2024 to a striking 14.5% in 2025, marking one of the most pronounced year-on-year increases globally.
Several factors contribute to this upward trajectory:
Post-Pandemic Healthcare Demand: The aftermath of the COVID-19 pandemic has seen a notable increase in healthcare utilisation. Many individuals deferred medical treatments during the pandemic years, leading to a backlog of procedures and consultations. As these delayed treatments are now being addressed, there’s an amplified demand for medical services, subsequently driving up costs.
General Inflation: New Zealand has experienced elevated levels of inflation across 2023 and 2024. This economic environment has directly impacted the cost of medical care, as expenses for medical supplies, equipment, and services have risen in tandem with broader inflationary trends.
Strain on Public Healthcare: The public healthcare system in New Zealand has been under considerable pressure, prompting more individuals to seek private healthcare alternatives. This shift increases demand in the private sector, contributing to higher medical costs and, consequently, rising insurance premiums.
Globally, the average medical trend rate is projected to be 10% in 2025, following a peak of 10.1% in 2024—the highest in the past decade. The Asia-Pacific region, in particular, is witnessing substantial increases, with New Zealand recording the second-highest medical trend rate in 2025, surpassed only by Kazakhstan at 22%.
Key drivers of these rising medical trend rates include increased demand for prescription and specialty medications, innovations in medical technology, geopolitical factors impacting supply chains and healthcare costs, and a heightened focus on emotional health, with stress management and wellbeing initiatives becoming priorities.
As we navigate this evolving landscape, AdAstra Financial Services remains dedicated to supporting our clients, helping them make informed decisions to protect and enrich their lives.