Suncorp New Zealand has raised concerns about ongoing residential development in flood-prone and high-risk areas, cautioning that short-term housing goals may be creating future insurance challenges.
Sacha Cowlrick (pictured), executive general manager of business at Suncorp NZ, has called attention to the growing number of new housing consents approved in locations identified as susceptible to natural hazards.
In a recent commentary, she argued that consenting to build in known risk areas could undermine both community safety and insurance affordability.
“In Auckland, more than 4,000 homes have been consented in floodplains since the 2023 storms. One flood damaged home is set to be replaced with seven new townhouses on land deemed unsafe for vulnerable people and vehicles,” Cowlrick said.
She added that while some mitigation measures – such as building on stilts – are being employed, they do not address broader access and infrastructure vulnerabilities.
The issue, she said, is not isolated to Auckland. Similar developments are being considered in other high-risk regions, including Napier and Canterbury, which have both previously experienced significant natural disasters.
Cowlrick noted that continuing to build in vulnerable areas could result in higher premiums, or in some cases, the unavailability of cover altogether.
This scenario could leave homeowners with limited options for protection and put pressure on public funds when recovery is needed.
She also cautioned that the burden of long-term damage and disruption is often underestimated at the consent stage, particularly when approvals are issued with limited consideration of future climate exposure.
“Without insurance, buying and selling a home isn’t possible for most people, and councils and government have made it clear they can’t afford to continue rebuilding communities impacted by weather events over the long term,” Cowlrick said.
The upcoming National Policy Statement on Natural Hazards was described by Cowlrick as a necessary step toward consistent, risk-aware decision-making at the local level.
She argued that councils need stronger tools to prioritise safety when weighing housing applications.
While she acknowledged that design strategies such as elevating homes can play a role in mitigation, she said that such solutions must be matched with adequate infrastructure improvements – such as stormwater networks and evacuation routes – to ensure residents are not isolated during severe weather events.
In parallel with local concerns, global insurance data continues to reflect the increasing cost of extreme weather.
According to a new report from Willis, insured losses from natural disasters in 2025 are projected to once again exceed US$100 billion – marking the seventh consecutive year at or above this level.
Among the largest events to date, the January wildfires in Los Angeles have resulted in insured losses exceeding US$40 billion. This event alone represents roughly one-third of global catastrophe claims this year.
Other significant incidents include large-scale wildfires in Japan and South Korea, a highly active tornado season in the US, and a rare cyclone landfall in Brisbane.
