Insurance costs have moved up to become the fourth-largest financial concern for New Zealanders, trailing only housing, groceries, and debt, according to the latest data from Consumer NZ.
The position represents a notable rise since October 2024, when insurance ranked sixth.
The national survey, involving more than 1,000 respondents, pointed to premium increases in house, contents, vehicle, and health insurance as key factors contributing to household financial stress.
At the same time, confidence in the insurance sector has declined, with more participants reporting distrust than trust in providers.
Rebecca Styles, investigations lead at Consumer NZ, said affordability is a growing barrier.
“Insurance is meant to provide a safety net, but for many people, it’s becoming increasingly difficult to access. When you add the complexity of policies and the lack of transparency, it’s easy to understand why trust in the industry is falling,” she said.
Consumer NZ’s forthcoming report on house and contents insurance is expected to address the affordability challenge in the context of increasing climate-related risks.
More severe and frequent weather events have led to higher risk-based pricing, leaving some policyholders in high-risk areas facing higher premiums – or unable to secure cover at all.
“We’re hearing more and more from consumers who feel they’re being priced out of essential cover,” Styles said.
While environmental risk remains a factor in premium calculation, public concern about climate change itself has lessened. The proportion of respondents naming climate change as a top concern dropped to 12%, compared with 15% in January and 17% the previous year.
Cost-of-living concerns continue to dominate the public discourse, with 65% identifying it as their main worry – an increase that reflects growing stress on household budgets. Rising costs across multiple categories, including insurance, are reinforcing these concerns.
Parallel findings from the Insurance Council of New Zealand (ICNZ) highlighted a shift in consumer behaviour as policyholders re-evaluate their insurance relationships.
A recent ICNZ-commissioned study revealed that 20% of respondents had changed insurers within the past two years. A further 34% had done so within five years, while 32% had never switched.
At renewal, 21% routinely compare offerings, although a quarter said they do not consider alternatives.
“The survey shows that a relatively low number of New Zealanders consider switching their insurance provider,” said ICNZ chief executive Kris Faafoi.
Research from Ipsos also showed persistent financial hardship. One in four households reported struggling to meet everyday costs, and this figure has held steady since 2023 but is up from 2022.
Financial pressure is more acute among lower-income households, and employment uncertainty remains high, with nearly half of respondents expressing concern over job stability.
