#economy: Protecting Whānau, Whenua and the Future: Why Insurance Isn’t Working for Many Māori
Insurance is supposed to provide protection when disaster strikes, but new research is examining why many Māori remain underserved by the insurance sector despite recognising the importance of protecting whānau, whenua and community assets. Financial Markets Authority Strategic Adviser Māori Hannah Chapman, who contributed to the research, says understanding the gap requires looking beyond whether…
Insurance is supposed to provide protection when disaster strikes, but new research is examining why many Māori remain underserved by the insurance sector despite recognising the importance of protecting whānau, whenua and community assets.
Financial Markets Authority Strategic Adviser Māori Hannah Chapman, who contributed to the research, says understanding the gap requires looking beyond whether Māori simply choose to purchase insurance.
The bigger issue is whether insurance products, providers and systems are designed around the realities of Māori lives, assets and communities.
For many whānau, insurance is understood as an important tool for protecting what matters. But affordability, accessibility, trust and whether conventional insurance products reflect Māori circumstances can all influence whether that protection is actually available.
Insurance matters — but access matters too
Insurance provides households with a financial buffer when the unexpected happens.
A house fire, flood, vehicle accident, serious illness or natural disaster can create costs that are impossible for many whānau to absorb without some form of financial protection.
That importance is becoming even greater as Aotearoa experiences increasingly severe weather events and rising costs associated with repairing and replacing damaged property.
But recognising the value of insurance does not automatically mean people can afford it.
When household budgets are already stretched by housing, kai, electricity and transport, insurance premiums can become another expense competing for limited income.
The danger is that those least able to absorb a major financial shock can also be those most likely to be left without sufficient cover.
Māori assets don’t always fit conventional models
There is also a distinctly Māori dimension to the insurance challenge.
Whenua Māori, collectively owned assets, marae and other community taonga do not necessarily fit neatly into insurance systems developed primarily around individually owned homes and conventional property structures.
The value of a marae, for example, cannot simply be measured by the replacement cost of its buildings.
It carries whakapapa, history, mātauranga and generations of connection.
Similarly, whenua can carry cultural and collective significance far beyond its conventional market valuation.
That raises questions about whether mainstream financial products adequately recognise what Māori are actually trying to protect.
Trust is part of the equation
The relationship between Māori and financial institutions also matters.
Insurance can be complex.
Policies contain exclusions, excesses, definitions and conditions that can be difficult to understand until somebody actually needs to make a claim.
For providers, building stronger relationships with Māori therefore requires more than translating brochures or marketing existing products differently.
It means understanding whānau aspirations, listening to communities and designing services that are accessible, transparent and culturally responsive.
Financial capability is part of the equation, but so too is whether the financial system itself is capable of responding differently.
Climate change makes the issue more urgent
The insurance gap could become increasingly important as climate change alters the risk profile of communities across Aotearoa.
Flooding, coastal erosion, storms and other natural hazards are already raising difficult questions about where insurance will remain available and affordable.
For Māori communities with deep whakapapa connections to coastal and rural whenua, simply relocating away from risk is not necessarily a straightforward solution.
Whenua is not interchangeable.
That means conversations about insurance increasingly intersect with climate adaptation, housing, infrastructure, whenua and intergenerational resilience.
If premiums rise beyond what households can afford — or insurers retreat from particularly vulnerable locations — communities could face a growing protection gap precisely when climate risks are increasing.
From financial product to whānau resilience
The FMA research provides an opportunity to think about insurance through a wider lens.
The objective is not simply selling more policies.
It is understanding whether Māori have access to appropriate tools for protecting whānau and collectively held assets when something goes wrong.
That requires the insurance industry, regulators and communities to examine affordability, product design, accessibility, communication and trust.
For Hannah Chapman, the research contributes to a bigger conversation about whether New Zealand’s financial system is serving Māori effectively.
Because insurance ultimately exists for the moment when people are most vulnerable.
If Māori understand the importance of protecting whānau, whenua and community assets but remain underserved by the system designed to provide that protection, the question is not simply why Māori aren’t buying more insurance — it is whether the insurance sector needs to change what it is offering.
