Many New Zealanders stay with the same health insurer for years, even when better options are available, because they worry about losing their no-claims history or having new exclusions applied. Here's how to switch safely.
Why People Switch Health Insurers
- Premium increases: Annual increases of 8–12% add up over time - Better coverage: Another insurer may offer better benefits for the same price - Changed circumstances: Life events (marriage, children, retirement) may mean your current policy no longer fits - Service issues: Claim disputes or poor customer service
The Risks of Switching
The main risk is losing the right to claim for pre-existing conditions that may currently be covered. When you switch, your new insurer may:
- Apply new exclusions to conditions you've developed since taking out your original policy
- Restart waiting periods for certain benefits
The "Transfer of Cover" Option
Most NZ health insurers offer a transfer of cover or continuity of cover option. This means:
- Pre-existing exclusions from your old policy are maintained (but no new ones are added)
- You don't restart waiting periods
- Your no-claims history may be recognised
This is only available if you switch to a comparable policy and don't have a gap in cover.
Step-by-Step: How to Switch Safely
1. Get quotes from multiple insurers with a licensed adviser 2. Request a transfer of cover application — don't just apply as a new customer 3. Don't cancel your old policy until your new one is confirmed in writing 4. Check the effective dates — ensure there's no gap in cover 5. Review your new policy document carefully before cancelling old cover
Using an Adviser
A licensed health insurance adviser can manage the entire switch process for you — at no cost to you. They have direct relationships with all major insurers and can negotiate the best terms.