The New ‘Must-Have’ Employee Benefit in NZ
Why Health Insurance is Becoming the New ‘Must-Have’ Employee Benefit in New Zealand
Inform 03
Health insurance used to be seen as a nice-to-have. Something for corporate giants or senior execs. But not anymore.
Across New Zealand, health insurance is fast becoming one of the most valued employee benefits—and a strategic advantage for forward-thinking SMEs.
If you’re running a business, especially in today’s tight labour market, offering private health cover isn’t just generous. It’s smart.
Here’s why.
Why Health Cover Is On the Rise
According to the Financial Services Council, nearly 37% of New Zealanders now have private health insurance—up from 32% just a year prior. That’s a significant jump.
The main reason? Long public waitlists.
After years of strain on the public health system, many Kiwis are turning to private options for peace of mind and faster treatment. Employees now expect more than just a salary—they’re looking for real wellbeing support.
It Pays to Keep Your Team Healthy
Offering health insurance isn’t just good for your people.
It’s good for business:
Faster return to work: Private cover means your team can get treated quickly and return to productivity sooner.
Attract top talent: In a competitive market, benefits matter. Offering health insurance makes your business stand out.
Build loyalty: Employees feel valued when you invest in their wellbeing.
Prevent burnout: Some policies include mental health support and GP visits—catching issues early and reducing sick days.
At InPlace, we’ve seen SMEs in construction, tech, manufacturing, and professional services gain a noticeable edge by introducing employee health benefits.
Tauranga Engineering Firm Sees Impact
One client, a mid-sized engineering firm in Tauranga, was struggling with staff turnover and extended sick leave. They introduced a basic group health plan through Southern Cross.
Within 12 months:
Sick days dropped by 27%
Staff engagement scores rose sharply
Hiring became easier, with candidates mentioning the benefit in interviews
It wasn't a silver bullet—but it changed the game.
What Does a Group Plan Actually Include?
Most group health insurance plans can be tailored to fit your budget.
Common features:
Hospital & Surgical Cover: For major procedures, diagnostics, and private treatment.
Specialist & Imaging Cover: Faster access to MRIs, CT scans, and specialists.
Optional Extras: GP visits, dental, optical, and mental health support.
Group plans often come with:
No medical underwriting up to certain limits
Discounted premiums compared to individual cover
Flexibility to extend to family members
It’s more accessible and affordable than most business owners realise.
Adrian Yamunanathan
"Health cover used to be for the big guys. Not anymore. Let’s find a version that works for your business and your people."
But What If I Can't Afford to Cover Everyone?
Good news: you don’t have to.
Many SMEs choose to co-fund the plan or offer it as an optional benefit.
You might:
Pay 50%, and let staff top up
Offer basic cover (e.g. hospital-only) and allow upgrades
Just offer the access to a group scheme—still a perk
Even partial funding shows you care, and it still provides access to faster care when your team needs it.
What to Consider
Headcount: Some providers start group plans from as few as 5 employees.
Budget: Decide what you’re comfortable funding.
What matters to your team: Are they looking for dental cover? Mental health support? Hospital and surgery access?
Talk to an advisor: Don’t go it alone. We help you compare providers, negotiate terms, and structure it around your goals.
InPlace is Making Health Insurance Work for New Zealand Businesses
Not sure if health insurance is worth it for your team?
You’re not alone. Most business owners we speak to are surprised by how flexible, affordable, and impactful it can be—especially in today’s hiring climate.
Book a free 1:1 conversation with Adrian.
No pressure, just a smart look at your options, what other SMEs are doing, and whether a tailored health plan could give your team the edge.