A significant portion of New Zealanders remain uncertain about the risks facing their homes, according to new research released by Tower.
The survey found that 46% of respondents want clearer information about their property’s exposure to natural hazards such as floods, landslides, and coastal surges.
The report, titled “Weathering change: attitudes to climate risk and resilience in New Zealand,” also showed that 86% of those surveyed consider property-specific risk data essential.
Tower issued the findings as it expanded its publicly available risk ratings and pricing model to include landslide and sea surge events, adding to earlier measures for earthquakes and inland flooding.
Tower chief executive Paul Johnston (pictured) said the insurer’s expansion is intended to align premiums more closely with the level of risk tied to each property.
“As weather events become more frequent and extreme, it’s important people have information about the risks that could affect their property,” he said. “We want to help people become more resilient to the impacts of climate change and prepared for the future. Like most Kiwi, we believe people should only pay for the risks that apply to their homes, not someone else’s. Expanding our risk-based pricing model is a fair and transparent way to support this.”
The company’s survey also revealed that 70% of New Zealanders support the idea of premiums being set according to individual property risks.
Meanwhile, 68% agreed it was reasonable for homes with higher exposure to natural disasters to face higher premiums.
Tower reported that the addition of landslide and sea surge risk assessments means more than nine out of 10 customers will see reductions in the natural hazard component of their home insurance, with an average decrease of about $70 per property.
Homes at greater risk will see increases, although the company said it will phase in adjustments over several years.
The insurer is working with international modelling organisations – including Moody’s, Haskoning, and Swiss Re – to produce the hazard data underpinning its pricing framework.
Customers can access their property’s hazard ratings by seeking an online quote through Tower.
The release of Tower’s findings coincided with new climate modelling research suggesting New Zealand could face significantly wetter cyclones by the end of the century.
Scientists at Earth Sciences New Zealand and the University of Waikato projected that tropical cyclone rainfall could increase by up to 35% if global greenhouse gas emissions remain high.
The modelling showed no major increase in cyclone numbers but indicated that stronger systems, such as Category 4 storms, are likely to become more frequent.
Researchers pointed to the atmosphere’s rising moisture capacity as a factor that could lead to more intense rainfall events.
These local insights emerge against a backdrop of sustained global catastrophe losses.
Willis’s Natural Catastrophe Review projects insured losses in 2025 will again exceed US$100 billion worldwide, extending a seven-year trend above that threshold.
So far this year, losses have been driven by the Los Angeles wildfires, estimated at more than US$40 billion, as well as significant fires in Japan and South Korea, a record tornado season in the US, and the first cyclone landfall near Brisbane in 50 years.
An above-average Atlantic hurricane season is expected, reinforcing industry concerns about elevated claims activity.
