Data from multiple sources indicates that New Zealand households are experiencing uneven changes in home and contents insurance costs, with regional risk profiles and more granular risk-based pricing influencing premiums for policyholders and insurers.
Figures supplied to Newstalk ZB by comparison platform Quashed suggest that Canterbury is seeing faster house insurance quote growth than the national average over the last three years, at almost double the pace of the country overall. Over the same period, Stats NZ data shows home insurance premiums nationwide are up 56%, while contents premiums have increased 55.3%. On Quashed, the average quoted price for house insurance has risen 34%, with contents quotes also up 34%.
Regional differences are evident. In Christchurch, where quotes have been rising steadily through the year, Quashed’s data shows average house insurance quotes up 60%, while average contents quotes are up 33%. Auckland’s average house insurance quote is up 46%, with contents quotes rising 30%. In Wellington, where insurance prices have long been at the higher end of the national range, the average house quote is up 41%, while the average contents quote has climbed 58%.
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Quashed chief executive Justin Lim said the data suggested Canterbury was seeing house insurance premiums rise consistently, while Wellington was seeing contents premiums increase more strongly. “When we dig into the regions, there are pockets where insurance premiums continue to climb. In these pockets are seeing continued increases and quite significant increases,” Lim said, as reported by Newstalk ZB.
Against this backdrop of diverging quotes, the Insurance Council of New Zealand (ICNZ) has urged caution in interpreting comparison-site figures as a definitive view of pricing in any one area. An ICNZ spokesperson said that quote-based averages may not match actual premiums paid across the broader customer base. “Quotes depend heavily on the specific property details entered, the policy type, and the insurers included on the platform, so averages drawn from this data may not reflect the full Christchurch market,” the spokesperson said.
ICNZ reiterated that premiums are a function of the underlying risk the property is exposed to. “New Zealand is one of the most natural hazard-exposed countries in the world, and some regions face higher or more complex risks than others. Christchurch, for example, has higher seismic risk, which increases the potential cost of claims,” it said.
According to ICNZ, the industry’s move toward more detailed risk-based pricing means premiums in higher-risk locations may diverge from national averages. The council also pointed to broader cost pressures applying across the market, including rising building and repair costs, more frequent severe weather, higher reinsurance costs, and government taxes and levies. “These combined factors mean some regions will see larger premium movements than others,” it said.
While industry groups emphasise risk and cost drivers, Consumer NZ has raised questions about the long-term affordability and availability of home insurance. Its latest report, drawing on Stats NZ data, notes that house insurance premiums have increased 916% since 2000. The organisation’s survey found that a growing share of households are going without cover due to cost, with 7% dropping insurance in 2022 and 17% doing so by 2025. Insurance now ranks among the four biggest financial pressures on New Zealanders, alongside housing, food, and household debt, according to the report. Consumer NZ warned that, as extreme weather risks rise, cover could become more limited or unavailable in certain parts of the country, particularly where risk-based pricing leads to higher location-specific premiums.
Separately, ICNZ-commissioned survey findings show a growing public focus on natural hazards as a driver of property insurance costs. In a poll of more than 1,000 people, 67% of respondents said natural hazards such as earthquakes, flooding, and sea level rise had a considerable or moderate impact on their insurance costs. Concern was more pronounced among older adults, professionals, mortgage-free homeowners, and recent claimants. Nearly one in four respondents said they lacked clear information about natural hazards when buying or owning property, with Wellington residents reporting the lowest satisfaction with the information available.
