Written by Henry Smith · Reviewed by Smiths Insurance & KiwiSaver — licensed Financial Advice Provider (FSP712931) · Last updated 2026-09-08

Insurance After COVID in NZ: How the Pandemic Changed Cover

COVID-19 reshaped the insurance industry in New Zealand. During the early months of the pandemic, insurers scrambled to manage unknown risks by introducing exclusions, pausing applications, and tightening underwriting criteria. Several years on, the landscape has largely normalised, but the effects linger for some applicants. If you have had COVID-19, are dealing with long COVID symptoms, or are simply wondering how the pandemic changed insurance in this country, this guide covers the current state of play.

A person lifts a face mask off with one hand while reading an open policy booklet in the other

How COVID-19 Changed Insurance Underwriting in NZ

COVID-19 changed insurance underwriting in New Zealand in three distinct phases. From 2020 to 2021 many life and health insurers added blanket pandemic exclusions and deferred applications for 30 to 90 days after recovery. Restrictions relaxed across 2022 and 2023, and by 2024 to 2026 a resolved infection is assessed like any other respiratory illness.

The initial response (2020 to 2021)

During the first year of the pandemic, most major insurers in New Zealand introduced some form of COVID-related restriction:

Pandemic exclusions. Several life and health insurers added blanket exclusions to new policies, meaning any claim arising from COVID-19 (or a declared pandemic) would not be covered.
Application deferrals. Some insurers paused applications from people who had recently tested positive for COVID-19 or were awaiting test results, typically requiring a deferral period of 30 to 90 days after recovery.
Travel insurance withdrawal. Most travel insurers either stopped selling policies altogether or excluded any claim related to COVID-19, border closures, or quarantine requirements.
Increased scrutiny. Underwriters began asking additional questions about respiratory health, recent travel, and exposure to the virus.

These measures were understandable given the uncertainty at the time, but they created significant gaps in cover for many New Zealanders.

The transition period (2022 to 2023)

As vaccination rates climbed and the health system gathered more data on COVID-19 outcomes, insurers began relaxing their restrictions. Blanket pandemic exclusions were gradually removed from new policies. Deferral periods shortened. Underwriting returned to a more individualised approach, where a history of COVID-19 was treated similarly to other respiratory infections, provided the applicant had made a full recovery.

The current landscape (2024 to 2026)

Today, the insurance market in New Zealand has largely moved past blanket COVID-19 restrictions. For most applicants, a straightforward COVID-19 infection that resolved without complications is not a barrier to obtaining cover. However, the pandemic has left lasting changes in how insurers think about pandemic risk, and applicants with ongoing symptoms face a different set of challenges.

Applying for Life Insurance After COVID-19

Applying for life insurance in New Zealand after COVID-19 usually proceeds on standard terms where the infection resolved within a few weeks and left no ongoing symptoms. Hospitalisation, ICU admission or complications such as pneumonia, myocarditis or blood clotting issues lead insurers to request a full GP or specialist report before deciding terms.

Full recovery with no ongoing symptoms

If you contracted COVID-19 and recovered fully within a few weeks, with no lingering symptoms or complications, most insurers will treat your application on standard terms. You will need to disclose that you had COVID-19 (if the application asks about your medical history within the relevant period), but it is unlikely to affect your premium or the terms of your cover.

In practice, this covers the vast majority of New Zealanders who had COVID-19. A single episode of mild to moderate illness that resolved completely is viewed by underwriters as a low-risk event.

Hospitalisation or complications

If your COVID-19 infection required hospitalisation, ICU admission, or resulted in complications such as pneumonia, myocarditis, or blood clotting issues, the underwriting process will be more involved. Insurers will typically:

Request a full medical report from your GP or treating specialist
Ask about the duration and severity of symptoms
Review any follow-up testing (chest X-rays, cardiac imaging, blood work)
Consider whether there are any residual effects

Depending on the findings, you may be offered cover on standard terms, with a loading (increased premium), or with an exclusion for related conditions. In some cases, the insurer may defer your application and ask you to reapply after a further period of monitoring.

Long COVID and Insurance in NZ

Long COVID presents the most significant challenge for insurance applicants in New Zealand, and insurers generally treat symptoms continuing more than 12 weeks after infection as long COVID. Common outcomes include deferral of 6 to 12 months until symptoms stabilise, an exclusion for related conditions, a loading, or a decline in severe cases.

What counts as long COVID

There is no single clinical definition, but insurers generally consider long COVID to be present when symptoms continue for more than 12 weeks after initial infection. Common symptoms include:

Persistent fatigue
Brain fog and cognitive difficulties
Shortness of breath
Chest pain or heart palpitations
Joint and muscle pain
Sleep disturbances
Anxiety or depression related to ongoing symptoms

How insurers assess long COVID

If you are experiencing ongoing symptoms at the time of application, most insurers will take one of the following approaches:

Approach	What it means
Deferral	The insurer postpones your application for 6 to 12 months (or longer) until your symptoms resolve or stabilise. This is the most common outcome for active long COVID symptoms.
Exclusion	You are offered cover, but any claim related to your long COVID symptoms (for example, respiratory or cardiac conditions) is excluded.
Loading	You are offered cover at an increased premium to reflect the higher risk associated with ongoing symptoms.
Decline	In severe cases, particularly where long COVID has resulted in significant organ damage or disability, the insurer may decline the application entirely.

The key factor is whether your symptoms are stable, improving, or worsening. Insurers are more likely to offer terms if you can demonstrate a clear recovery trajectory, supported by medical evidence.

Tips for applicants with long COVID

Get thorough medical documentation. Ask your GP to provide detailed notes on your symptoms, treatments, and progress over time. The more evidence of improvement you can provide, the better your chances.
Be patient with timing. If your symptoms are still active, it may be worth waiting until they improve before applying. A deferral now could result in a note on your record that follows you to other insurers.
Work with a licensed financial adviser. Different insurers take different approaches to long COVID. An adviser who understands the current underwriting landscape can target the insurer most likely to offer you favourable terms.

Health Insurance and COVID-19

Health insurance in New Zealand now generally covers treatment for conditions arising from COVID-19, including respiratory complications, cardiac monitoring and rehabilitation for long COVID, unless the policy carries a specific pandemic exclusion. Ongoing symptoms present before a policy starts may be treated as a pre-existing condition, with a stand-down period typically 12 months.

Current position on COVID-19 treatment

Most health insurers in New Zealand now cover treatment for conditions that arise from COVID-19, provided the policy does not contain a specific pandemic exclusion. This includes:

Respiratory complications requiring specialist treatment
Cardiac monitoring and treatment related to COVID-19
Rehabilitation services for long COVID symptoms
Mental health support related to pandemic-related anxiety or depression

However, routine COVID-19 testing and standard public health measures (such as isolation support) are generally not covered, as these are managed through the public health system.

Pre-existing condition considerations

If you had COVID-19 before taking out a health insurance policy, any ongoing symptoms may be classified as a pre-existing condition. This could mean:

A stand-down period before related claims are accepted (typically 12 months for pre-existing conditions on most health policies)
Specific exclusions for conditions linked to your COVID-19 history
Higher premiums if your medical history suggests elevated risk

If you already held a health insurance policy before contracting COVID-19, your cover should respond to any treatment needs, subject to the usual terms of your policy.

Income protection insurance responds to COVID-related absence in New Zealand only after the policy waiting period has been served, typically 4 to 13 weeks, so a standard infection keeping you off work for a week or two rarely generates a claim. Extended incapacity from long COVID can qualify where medical evidence meets the policy definition.

Short-term absence due to COVID-19

If you contract COVID-19 and are unable to work for a period, your income protection policy should respond after the waiting period has been served (typically 4 to 13 weeks, depending on your policy). A standard COVID-19 infection that keeps you off work for a week or two is unlikely to exceed most waiting periods, meaning no claim would arise.

Long-term inability to work

If COVID-19 or long COVID prevents you from working for an extended period, a claim under your income protection policy is possible. The insurer will assess:

Whether your symptoms meet the policy's definition of disability or incapacity
Medical evidence supporting your inability to perform your occupation
Whether your condition is expected to improve, and over what timeframe

Applying for income protection with COVID history

If you are applying for new income protection cover and have a history of COVID-19, the underwriting considerations are similar to life insurance. A full recovery with no ongoing symptoms is unlikely to affect your application. Active long COVID symptoms may result in a deferral, exclusion, or loading.

A traveller wheels a suitcase past a gate barrier, holding a leaflet covered in squiggly scribble lines

Travel Insurance After COVID-19

Travel insurance after COVID-19 has largely returned to comprehensive cover for New Zealand travellers, and as of 2026 most travel insurers again pay for medical treatment if you contract COVID-19 while overseas. Cover for trip cancellation after a positive test before departure varies by insurer, and government-imposed border closures and quarantine requirements remain excluded.

Where things stand now

As of 2026, most travel insurers have returned to offering comprehensive cover, including for medical treatment related to COVID-19 while overseas. However, there are important distinctions:

Medical cover for COVID-19 overseas. Most policies now cover the cost of medical treatment if you contract COVID-19 while travelling. This is a significant improvement from 2020 to 2022, when most policies excluded this entirely.
Trip cancellation due to COVID-19. Cover for trip cancellation because you test positive for COVID-19 before departure varies between insurers. Some include it as standard, others offer it as an optional add-on, and some still exclude it.
Government-imposed restrictions. Most travel policies still exclude claims arising from government-imposed travel bans, border closures, or quarantine requirements. These are considered foreseeable events and are typically listed as general exclusions.

Tips for travellers

Read the Product Disclosure Statement (PDS) carefully before purchasing travel insurance
Check specifically whether COVID-19 medical treatment is covered at your destination
Understand the cancellation terms if you test positive before departure
Consider whether your policy covers additional accommodation costs if you need to isolate overseas

What Insurers Ask About COVID-19 Now

Most insurance application forms in New Zealand capture a COVID-19 history without naming COVID-19, asking whether you have been diagnosed with or treated for any respiratory condition or hospitalised in the last five years. Some insurers add direct questions about diagnosis, complications, and symptoms lasting more than four weeks after infection.

Have you been diagnosed with or treated for any respiratory condition in the last five years?
Have you been hospitalised for any reason in the last five years?
Are you currently experiencing any symptoms of illness?
Have you been referred to a specialist for any reason?
Do you take any regular medication?

Some insurers have added specific COVID-19 questions, such as:

Have you been diagnosed with COVID-19? If so, when, and did you experience any complications?
Have you experienced any symptoms lasting more than four weeks after a COVID-19 infection?
Have you been hospitalised due to COVID-19?

As with all insurance applications, your duty of disclosure requires you to answer these questions honestly and completely. Failing to disclose a COVID-19 history, particularly one involving hospitalisation or ongoing symptoms, could result in a claim being denied.

Pandemic Clauses in Modern Policies

Pandemic clauses in modern policies are a lasting legacy of COVID-19, because before 2020 most New Zealand policy documents did not mention pandemics at all. Travel policies now often define government-declared pandemics or epidemics, some business and general insurance policies have broadened force majeure wording, and life and health insurers have clarified how infectious-disease claims are assessed.

Defined pandemic exclusions in travel insurance. Many travel policies include specific language about government-declared pandemics or epidemics.
Updated force majeure clauses. Some business and general insurance policies have broadened their force majeure definitions to include pandemics.
Clearer definitions of covered events. Life and health insurers have generally not added pandemic exclusions to personal risk products, but policy wordings have been clarified to address how claims related to infectious diseases are assessed.

It is worth reading the policy wording of any new insurance product carefully to understand how pandemic-related events are treated.

Getting the Best Outcome as an Applicant

Getting the best outcome as an applicant with a COVID-19 history in New Zealand depends on five practical steps. Gather a GP summary covering your episode and recovery, wait until symptoms have resolved before applying, disclose everything honestly, use a licensed financial adviser, and compare insurers, because underwriting appetites differ and a loading with one insurer can be standard terms with another.

Gather your medical records. Before applying, obtain a summary from your GP that covers your COVID-19 episode, any treatment received, and confirmation of recovery.
Wait until you are well. If you are still experiencing symptoms, applying too early may result in a deferral or exclusion that could have been avoided with a few more months of recovery.
Disclose everything. Answer all application questions honestly and completely. Non-disclosure is the fastest way to have a future claim denied.
Use a licensed financial adviser. An adviser can assess your situation, recommend the most appropriate insurer, and present your application in the best possible light. This is particularly valuable for applicants with complicated medical histories.
Compare across insurers. Different insurers have different underwriting appetites. What results in a loading with one insurer may be accepted on standard terms with another.

Get matched with an adviser through QuoteHub to find the right cover for your situation.

Frequently Asked Questions

Can I get life insurance in NZ if I have had COVID-19?

Yes. If you have made a full recovery from COVID-19 with no ongoing symptoms, most insurers will offer you cover on standard terms. A straightforward infection that resolved within a few weeks is treated similarly to any other common illness. Hospitalisation or complications may require additional medical evidence and could result in adjusted terms.

Does long COVID affect my ability to get insurance?

It can. If you are experiencing ongoing symptoms from long COVID at the time of application, insurers may defer your application, apply exclusions for related conditions, or increase your premium. The outcome depends on the severity and trajectory of your symptoms. Working with a licensed financial adviser can help you identify the insurer most likely to offer favourable terms.

Do I have to tell my insurer I had COVID-19?

You must answer all application questions honestly. If the insurer asks about respiratory illnesses, hospitalisations, or medical treatment within the relevant period, and your COVID-19 experience falls within that scope, you need to disclose it. Failing to do so could result in a claim being denied in the future.

Has travel insurance gone back to normal after COVID-19?

Mostly, yes. Most travel insurers now cover medical treatment for COVID-19 while overseas. However, cover for trip cancellation due to a positive COVID-19 test varies between providers, and government-imposed travel restrictions remain excluded by most policies. Always check the PDS before purchasing.

Will COVID-19 vaccination status affect my insurance?

No. New Zealand insurers do not differentiate between vaccinated and unvaccinated applicants in their underwriting. Your vaccination status is not a factor in premium calculations or policy terms. The focus is on your actual health status and medical history.

Are pandemic exclusions still common in insurance policies?

For life and health insurance, blanket pandemic exclusions have largely been removed. For travel insurance, some pandemic-related exclusions remain, particularly around government-imposed restrictions and border closures. Business insurance and general insurance policies may also contain updated pandemic-related clauses.

References

Insurance Council of New Zealand. "COVID-19 and Insurance FAQs." Accessed March 2026.
AIA New Zealand. "Underwriting and COVID-19: Information for Advisers." Accessed March 2026.
Partners Life. "Application Guidelines Post-COVID-19." Accessed March 2026.
Fidelity Life. "Underwriting Update: COVID-19 and Long COVID." Accessed March 2026.
Financial Markets Authority (FMA). "Insurance and the Duty of Disclosure." Accessed March 2026.
Ministry of Health NZ. "Long COVID Information and Support." Accessed March 2026.
Sorted.org.nz. "Understanding Your Insurance Options." Accessed March 2026.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. QuoteHub connects New Zealanders with licensed financial advisers. Our Financial Services Provider (FSP) number is 712931. Always seek personalised advice from a licensed financial adviser before making insurance decisions.

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