AI-Driven Wealth Surge Exposes NZ Insurance Industry to Market Risks
New Zealand ranked seventh globally in household wealth when including real estate assets, according to Allianz Research's Global Wealth Report. The report found that property-heavy balance sheets limit direct equity exposure, but insurance and pension products are losing ground to securities worldwide.
Global household financial assets rose 8.6% to a record €268.4 trillion in 2025, driven mainly by rising asset prices. However, inflation-adjusted real wealth grew only 23%, and purchasing power remains just 5% above its 2021 level.
The distribution of these gains is significant for the insurance industry, as markets do most of the work in creating new wealth. New Zealand's household debt ratio stood at 72.1% of GDP at the end of 2025, higher than the global average.