#national: Insurance warning: act now or risk losing cover

A new report is warning that communities across Aotearoa face growing risks from natural hazards, with urgent action needed to keep insurance affordable and accessible.

The Insurance Council of New Zealand has released its 2025 Annual Review, highlighting the increasing impact of severe weather events and the pressure they are placing on homes, infrastructure and local economies.

The review points to recent storms and flooding as a reminder of the widespread disruption and damage natural disasters can cause, while also stressing that prevention is more effective than recovery.

Industry leaders say reducing risk before disasters strike is critical, with a focus on smarter planning, stronger infrastructure and better use of data to guide decision-making.

There is growing concern that without these steps, some communities could face rising insurance costs or reduced access to cover, particularly in areas exposed to repeated flooding and storm damage.

The report outlines ongoing work with central government and councils on major policy reforms, including climate adaptation, resource management and emergency management systems.

Local councils are being identified as playing a key role, with decisions around land use and development seen as crucial in managing long-term hazard risks.

With 2026 an election year, there are calls for political parties to maintain momentum and build cross-party agreement on how to respond to climate-related risks.

The review also highlights a new industry data platform aimed at improving understanding of risk and supporting better policy decisions, as the sector prepares for increasingly complex challenges.

The findings reinforce a clear message that delaying action could have serious consequences, not only for communities but for the future of insurance in Aotearoa.