New Zealand: Financial and insurance services are among those facing the weakest competitive pressure
Source: Asia Insurance Review | Jun 2026
Financial, insurance, electricity, gas, water and waste management services are among the industries facing the weakest competitive pressure in New Zealand, according to the first State of Competition report released by Commerce Commission of New Zealand.
The 98-page report published on 12 May 2026 provides an evidence-based assessment of how competition is working across New Zealand’s economy. The report reveals that financial and insurance services are among the four least competitive industries, however, they also have important inputs into other industries.
The first edition of State of Competition in New Zealand 2026 report drew on a detailed analysis of 22 years (2001-23) of Stats NZ data from individual businesses to establish baseline competition measures for future monitoring.
Commerce Commission Chair Dr John Small said, “Competition indicators present a mixed picture. The report finds that while business concentration has reduced on average, competitive pressure has weakened in many parts of the economy.”
Findings of the report include:
- Slightly reduced concentration across industries. This trend has occurred consistently over time, accelerating after the global financial crisis (GFC). This implies competition is improving.
- Business dynamism has generally declined. Rates of business entry and exit fell materially, and new entrants gained less early traction. This implies competition is declining.
- Some essential industries face limited competitive pressure, meaning weaknesses can ripple across the wider economy, especially when these industries are ‘upstream’ of other industries that rely on them.
- Other industries are improving, including rental, hiring and real estate services, and parts of the broader services sector.
Competitive markets are critical to New Zealand’s economic performance. When competition weakens, innovation slows, costs rise, and consumers pay the price. A competitive environment enabling small businesses to grow is essential for productivity and long-term growth.
Although grounded in domestic data, the findings align with international trends. The OECD has seen evidence of weakening competition across many advanced economies since 2000. The findings also sit alongside persistent domestic challenges such as low productivity growth and how infrastructure investment is planned and delivered. A