The Insurance Council of New Zealand | Te Kāhui Inihua o Aotearoa (ICNZ) is urging faster action to strengthen the country’s resilience to natural hazards, warning that intensifying risks from climate-related events must be addressed more proactively to protect communities and support the long-term availability of insurance. ICNZ’s call comes with the release of its 2025 Annual Review and new survey findings on public attitudes to climate-related risks, both of which link adaptation measures and policy settings to the future accessibility and pricing of cover across New Zealand.
ICNZ chief executive Kris Faafoi said recent weather events have highlighted the exposure of households, businesses, and infrastructure to storms, floods, and other natural hazards. “Recent severe weather events are a reminder of the damage, disruption, and devastation to life, property, and communities,” Faafoi said. He said that while claims handling and recovery support remain central industry roles, there is growing emphasis on lowering risk before events occur. “Insurance plays a critical role in helping New Zealanders get back on their feet after disasters. However, we all know it’s better for New Zealand to work collectively to act before disaster strikes, rather than pick up the pieces afterwards,” he said. The 2025 Annual Review outlines ICNZ’s engagement with central and local government on the government’s National Adaptation Framework, resource management and building system reforms, and emergency management settings. The council reports an expanded focus on working with councils, reflecting the impact of land-use and infrastructure decisions on flood and other hazard outcomes.
Faafoi described the National Adaptation Framework as a starting point for policy development but said implementation now needs to progress. “The government’s National Adaptation Framework is a vital first step. Now it’s time to move the dial from good intentions to real action,” he said. With 2026 an election year, ICNZ is signalling that stable, cross‑party support for adaptation will be a key concern for insurers and reinsurers. “New Zealand is at a pivotal point. The direction is increasingly clear, but delivery now matters. Communities facing repeated flooding or storm damage cannot afford delay,” Faafoi said.
The Annual Review also describes ICNZ’s investment in a shared data platform, Te Pou Inihua, for use across the general insurance sector. According to ICNZ, Te Pou Inihua is intended to provide aggregated insurance information to support risk assessment, planning, and regulatory decisions, and to inform public understanding of hazard and exposure. “Better data means better decisions. Te Pou Inihua will provide a trusted, aggregated view of insurance insights to inform government, communities, and the sector as we navigate increasingly complex risks,” Faafoi said. The review notes ongoing work with global reinsurers and continued activity related to the Fair Insurance Code. More detailed data combined with evolving policy frameworks is expected to influence underwriting appetites, product design, and portfolio management, particularly in higher‑risk locations and for climate‑exposed lines.
ICNZ’s stance on resilience and adaptation is supported by a national survey it commissioned on attitudes to climate‑related hazards, including flooding, landslips, and sea level rise. The research found that 87% of respondents favour acting early to protect communities from natural disasters. “Kiwis overwhelming agree it’s better to act before disaster strikes to protect communities, rather than pick up the pieces afterwards. It’s a no brainer, really,” Faafoi said.
Seventy‑one per cent (71%) of respondents agreed that natural disasters are likely to become more serious and frequent due to climate‑related events. Faafoi pointed to modelling suggesting that rainfall intensity could increase in future. “Modelling by Earth Sciences shows that major cyclones could bring up to 35% more rainfall to New Zealand by the end of the century. This significantly increases the flooding risk to vulnerable communities. New Zealand’s land‑use decisions must change. The government’s National Adaptation Framework is an important start, but there is urgency in turning intent into action to deliver enduring solutions that reduce risk and keep communities out of harm’s way. We strongly agree that adaptation must be embedded in long‑term planning,” Faafoi said.
The survey indicates that respondents recognise a link between climate risk and insurance pricing. Sixty‑five per cent (65%) said they accept that premiums may need to rise to reflect growing climate risks. In addition, 61% said they believe the government should lead the response to protect communities from climate change. Faafoi said insurers see a connection between risk reduction measures and the future availability of insurance. “Kiwis value the protection insurance provides from unexpected and unwanted events. But keeping insurance accessible requires of us, led by government, to step up and reduce the underlying risk. That includes investing in resilient infrastructure like flood protection and avoiding building in high‑risk areas. Despite that, there’s concern that current efforts are falling short,” Faafoi said.
The survey results also point to mixed views on current public investment and regulatory settings. Some 44% of respondents said New Zealand is not investing enough to protect communities from natural hazards, compared with 35% who disagreed. Separately, 43% said they believe land‑use controls are strong, while 39% disagreed, indicating concern about development in higher‑risk areas. “These results underline the need for greater certainty around the rules and tools to help communities reduce their exposure to natural hazard risks,” Faafoi said. He added that adaptation spending and planning changes are linked to long‑term cover. “Every dollar invested in adaptation brings significant long‑term economic and social benefits. Acting now means we can avoid the far higher costs of future disasters and supports the long‑term accessibility of insurance,” he said.
