And more importantly… what can you actually do about it?
Have you opened your latest health insurance renewal and thought:
“Wow, that’s gone up a lot.”
You’re definitely not alone.
Over the past few months, we’ve spoken with many clients who have been surprised by rising health insurance premiums. Some have even considered cancelling their cover altogether because it no longer feels affordable.
Before making any decisions, it’s important to understand why premiums are increasing — and what options you may have to keep your cover working for you.
Why are health insurance premiums increasing?
Health insurance premiums rarely increase for just one reason. In most cases, they are affected by a combination of factors across New Zealand’s healthcare and insurance sectors.
Healthcare costs are rising
Medical care continues to improve, which is great news for patients.
New technology, advanced procedures, specialist treatment, diagnostic scans, cancer care, and surgical techniques can all lead to better outcomes — but they also come at a higher cost.
As insurers pay more in claims, premiums often need to increase to reflect those rising healthcare costs.
More claims are being made
New Zealanders are using their health insurance more than ever.
Claims for specialist appointments, scans, surgery, cancer treatment, and elective procedures have increased significantly over recent years.
When insurers pay more in claims across the board, those costs are usually reflected in future premiums.
Your age also affects your premium
Health insurance is generally priced based on risk.
As we get older, the chance of needing medical treatment increases. Because of this, many health insurance policies become more expensive as you move through different age brackets — even if you personally have never made a claim.
That can feel frustrating, but it is simply part of how health insurance is priced.
Should you cancel your health insurance?
Not without reviewing your options first.
Cancelling your health insurance may reduce your monthly costs today, but it could create bigger problems later.
For example, if you have developed any medical conditions since taking out your current policy, those conditions may not be covered if you try to apply for new cover in the future.
That is why it is important to get advice before cancelling or changing your policy.
In some cases, staying with your current insurer may still be the best option. In other cases, there may be ways to reduce your premium while keeping valuable protection in place.
What can you do to reduce your premium?
The good news is that you may have more options than you think.
Increase your excess
One of the simplest ways to reduce your premium is to increase your excess.
Some insurers offer up to a $10,000 excess per person per policy year. This lowers premiums dramatically. But is it right for you?
Your excess is the amount you agree to pay yourself when making a claim. If you are comfortable taking on a higher excess, your regular premium may reduce.
For many people, this can be a practical way to keep health insurance in place while making the cost more manageable.
Do you still need Specialist and Tests Covered?
Some insurers will allow an additional excess for specialists and tests which can help lower premiums. Its worth considering as an option if removing specialists and tests could make sure you can keep your surgical cover in place for longer and make the premiums lower for you. Once specialists and tests are removed however its unlikely you can get them back on the same terms or at all. Talk to us to go through your options.
Compare other insurers
Not all health insurers price their policies in the same way.
Depending on your age, medical history, current policy, and the type of cover you need, another insurer may offer a more suitable option.
However, switching insurers needs to be handled carefully. A cheaper premium is not always better if it means losing important benefits or having medical conditions excluded.
That is why comparing policies properly is so important.
Consider current offers and benefits
Some insurers offer promotions or added benefits from time to time.
These may include:
Free premium periods
Cashback offers
Wellness programmes
Member benefits
Multi-policy discounts
These offers should never be the only reason to change insurer, but they can add value when the underlying cover is right for you.
The cheapest policy is not always the best policy
Health insurance is not just about finding the lowest premium.
A cheaper policy may look attractive, but it may also come with reduced benefits, higher out-of-pocket costs, or exclusions that only become obvious when you need to claim.
At the same time, paying more does not automatically mean you have better cover.
The key is finding the right balance between affordability, benefits, flexibility, and long-term value.
When was the last time you reviewed your cover?
Many people take out health insurance and then leave it unchanged for years.
But life changes.
Medical costs change.
Insurers change.
Premiums change.
Your health insurance should be reviewed regularly to make sure it still fits your needs, budget, and stage of life.
We’re here to help
At NZ Advice Group, we work with a range of New Zealand’s leading insurers.
That means we can help you:
Understand why your premium has changed
Review whether your current policy still suits your needs
Compare options across multiple insurers
Look for ways to reduce costs without giving up important protection
Understand the risks before cancelling or switching cover
Our reviews are free, personalised, and obligation-free.
Sometimes the best option is to stay exactly where you are. Other times, a few small changes can make a meaningful difference.
Book your free insurance review
If your latest renewal has left you wondering whether you are paying too much, let’s have a conversation.
We’ll explain your options, answer your questions, and help you make an informed decision.