A recent survey by the Insurance Council of New Zealand (ICNZ) has highlighted that natural hazards – including earthquakes, flooding, and sea level rise – are seen by many New Zealanders as major contributors to rising property insurance premiums. The survey, which collected responses from over 1,000 people across the country, underscores growing public concern about both the affordability and accessibility of insurance as environmental risks intensify.
ICNZ chief executive Kris Faafoi said the findings indicate that people across New Zealand recognise the impact that natural hazards and climate change are having on insurance. He added: “We need a combined effort from government, councils, and communities to reduce risks and ensure insurance remains accessible.”
The findings indicate that 67% of respondents believe natural hazards have a considerable or moderate impact on their insurance costs. This perception was particularly pronounced among older adults, professionals, homeowners without mortgages, and those who had recently made insurance claims. Additionally, nearly one in four respondents reported a lack of clear information about natural hazards when buying or owning property, with Wellington residents expressing the lowest levels of satisfaction regarding access to such information.
This lack of accessible information is echoed in other recent research, which points to ongoing uncertainty among homeowners about the specific risks facing their properties. Research released by Tower found that 46% of New Zealanders want clearer information about their property’s exposure to hazards such as floods, landslides, and coastal surges. The report also showed that 86% of respondents consider property-specific risk data essential.
The issue of natural hazard risk is further underscored by recent research from Earth Sciences New Zealand, which found that more than 750,000 people currently live in areas vulnerable to flooding from one-in-100-year rainfall events. With projected temperature increases of three degrees, this figure could surpass 900,000. The study estimates that $235 billion in building assets are exposed to these flood risks today, with potential exposure rising to $288 billion under higher warming scenarios.
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Dr Emily Lane, programme leader and principal hazards scientist at Earth Sciences New Zealand, noted that flood risk is rising in many parts of the country, even in regions that have not experienced flooding before. She added: “This is partly due to climate change – we know rainfall intensity is increasing across Aotearoa, with more rain falling in shorter periods. Rapid urban intensification is another contributing factor.”
Concerns about insurance affordability are not limited to natural hazards alone. A recent report from Consumer NZ points to growing challenges for households in maintaining home insurance coverage. The report warns that as extreme weather risks escalate, insurance could become increasingly limited or unavailable in some regions. According to Stats NZ, house insurance premiums have increased by 916% since 2000.
The Consumer NZ survey highlights a trend of households dropping insurance due to cost, with 7% doing so in 2022 and 17% in 2025. Insurance now ranks among the top four financial pressures for New Zealanders, alongside housing, food, and household debt. The report also notes low trust in insurers, with common frustrations including slow claims processing, settlement delays, and a lack of transparency around how premiums are set. Risk-based pricing is a particular area of concern, as many policyholders are unable to access the data behind their premiums, making it difficult to challenge assessments. Limited online comparison options, especially for high-risk properties, further restrict consumer choice.
Participants in the ICNZ survey indicated a preference for limiting development in areas identified as high risk and for investing in infrastructure such as flood defences to help maintain the availability of insurance. The insurance sector has called for collaboration between government, local authorities, and communities to address these issues and maintain insurance availability in New Zealand over the long term. Faafoi said: “The findings underline the growing need for transparent hazard information, smarter land-use decisions, and resilient infrastructure investment to maintain long-term insurance accessibility in New Zealand.”
