Similar benefits exist in other forms of insurance - such as life and disability insurance - that support the willingness of individuals and businesses to take risks and protect them from financial hardship. The Canterbury earthquakes revealed high levels of insurance penetration for home insurance in New Zealand.
This is because, •  firstly, as an asset-backed term financing product, leasing helps avoid need for collaterals; and,  •  secondly, leasing institutions are expected to develop or possess critical skills that give them a strong comparative advantage on the SME client segment.