AIA NZ has launched AIA Living Severe Trauma, a new insurance option designed to provide cost-effective protection for New Zealanders facing the most serious medical diagnoses. The insurer said the product offers a simpler, more affordable alternative to comprehensive trauma cover while still addressing the conditions that drive most trauma claims.
Severe Trauma focuses on high-severity medical events with lasting impact, including cancer, heart attack and stroke, which AIA NZ said are the three most common causes of trauma claims. “As market leaders in insurance, we’re committed to keeping protection accessible and relevant for all New Zealanders,” says Alex Kühnast, AIA NZ chief product and marketing officer. “With cost-of-living pressures and growing awareness of serious health conditions, Severe Trauma is a timely and targeted solution that helps customers manage the financial impact of major diagnoses.”
The product can be purchased as a standalone or accelerated benefit, or added to an existing trauma policy to offer layered protection. AIA NZ said it complements its existing trauma range by providing a more affordable entry point alongside Critical Conditions, its comprehensive trauma cover, and Progressive Care, its severity-based cover.
The insurer said the severity thresholds and claim criteria for the new product are the same or higher than comprehensive trauma. This allows it to be offered at significantly lower premiums, with most demographics paying 60–70% less than for AIA’s Critical Conditions cover. While the discount reduces at older ages, AIA NZ said Severe Trauma is particularly suitable for younger customers entering the market, older customers reassessing affordability, and existing policyholders looking to retain cover without new underwriting.
Severe Trauma covers fewer conditions than Critical Conditions and requires higher severity thresholds for most claims, which AIA NZ said enables it to provide a meaningful safety net for major health events while supporting product sustainability. “We’ve seen a clear trend of customers downgrading or exiting trauma cover due to affordability,” says Kühnast. “Severe Trauma gives them a way to stay protected without compromising on the quality of cover for the most serious conditions.”
The launch follows updates to AIA NZ’s wider product suite, including the Specialist and Testing Support Benefit and a new $10,000 health cover excess option designed to improve affordability. “We’re proud to support advisers with more flexible trauma options that meet evolving customer needs,” says Kühnast. “Whether sold alone or bundled with comprehensive trauma cover, Severe Trauma is a smart, sustainable solution for today’s environment.”