Ask just about anyone. We all have a story to tell about the time we were driving, and "Just didn't see him", whether the situation involved another driver, pedestrian, cyclist, or motorcyclist. This is because looking is not the same as seeing, and no one is immune to inattentional blindness.
Drivers often fail to notice unexpected events, even important ones. Critically though, we assume we will notice - as long as we are looking in the right direction. We think unexpected objects and events will "grab" our attention. We consider ourselves careful drivers, and that we would see a cyclist because a cyclist would just "pop out" into view. However, human attention does not function in this way.
Cognitive psychologists refer to this phenomenon as the "illusion of attention". People don't see the cyclist because they aren't looking for the cyclist.
Why are Kiwis bicycle-blind? New Zealand is not a transport-by-bicycle culture, unlike many European countries such as Germany and the Netherlands where visually, bicycles outnumber cars. Most New Zealand motor vehicle drivers' brains are not intentionally malicious, or careless towards cyclists, they just don't see them.
The Transport Agency's latest advertising campaign attempts to "humanise" and "personalise" the cyclist, as if a separate category of the community. But they aren't. They most likely have a car too.