New Zealanders will be able to protect their identity against theft, with a credit agency and a local insurer joining forces in a regional first.

Veda Advantage and CIGNA Insurance have launched an identity theft insurance scheme that allows customers to constantly monitor their credit file and protect themselves if someone tries to steal their identity.

Veda Advantage NZ MD John Roberts told insuranceNEWS.com.au trend data shows identity theft has risen significantly in NZ over the past couple of years. With 97% of the population’s credit files, it seemed the perfect opportunity to team up with CIGNA.

“Everyone is excited about, the NZ police are excited. It’s just another step in trying to mitigate these situations,” Mr Roberts said. “And if identity theft does occur for whatever reason there’s now some support there to get people back up and running.”

Insurance Council of NZ CEO Chris Ryan told insuranceNEWS.com.au identity theft is now a huge risk in NZ and Australia, following the growth of the crime overseas. In the US, someone’s identity is compromised every two seconds.

“This is a very good development for the market,” he said. “And it reflects the real danger of fraud in people’s lives when they least suspect it.

“The interesting thing is that frequently it’s international syndicates that are engaging in identity fraud and not necessarily Australian or NZ-based ones. So they’re picking up on the latest fraud opportunities and are here before people even realise they’re at risk.”

The product, called My Veda Alert, is available on its own in Australia but there are no plans as yet to roll out a similar partnership with the insurer for Australian customers.