The Insurance Council of New Zealand, a lobby group for general insurers, is renewing its calls for faster action on New Zealand's resilience, as insights from global reinsurers reinforce a clear message: risk from catastrophes is increasing in scale and complexity.
Global insured losses from natural catastrophes was over US$100 billion (NZ$173 billion) in 2025 and Insurance Council of New Zealand - Te Kāhuia Inihua o Aotearoa (ICNZ) says, this highlights the structural nature of risk in the current insurance environment.
And NZ, with its exposure to flooding, landslips, earthquakes and wildfires, reflects these global trends, ICNZ says in its 2025 annual review.
This annual review, shared on Friday, comes as heavy rain, wind and floods are impacting the North Island - with Kaitaia locals being evacuated from their homes, and states of emergencies declared by the Far North District Council and Whangārei District Council. Northland and Auckland have been hit with over a month’s average rainfall in 24 hours, and the Bay of Plenty is bracing for extreme weather.
In its 2025 annual review, ICNZ says total insurance claims hit $3.8 billion. Of this, motor-related claims hit $1.8 billion, and home and contents claims reached $1.1 billion. Levies and GST paid by customers in premiums was $2.8 billion.
Inflation and rising construction costs have further intensified the impact, ICNZ says, increasing the expense and duration of rebuilds.
“Combined with growing exposure in hazard-prone areas, these factors contribute to higher claims and highlight the limits of relying on insurance alone to absorb risk.”
ICNZ says: “For New Zealand, this underscores the importance of both risk transfer and risk reduction. Collaboration between government, councils, the private sector and communities is essential to reduce underlying exposure.”
“Investment in resilient infrastructure, stronger building standards, effective land-use planning, and accessible risk information all help to reduce the final and social impacts of natural hazards.”
What the global reinsurers are saying
Included in ICNZ’s annual review, are quotes from global reinsurers which speak to the drivers behind global losses.
This includes Swiss Re, which says: “Even in years without headline earthquakes or cyclones, cumulative losses from storms, floods and wildfires remain significant.”
Munich Re says weather disasters accounted for 92% of all 2025 losses and for 97% of insured losses. “Scientists largely agree that such natural disasters are becoming more severe and more frequent in many parts of the world.”
Aon says rising property values and greater asset concentration amplify the financial impact when natural hazards occur.
ICNZ says these insights reinforce a clear message that catastrophe risk is increasing in scale and complexity.
“Global reinsurers are clear. Long term certainty, policy stability and sustained investment in adaptation is necessary to maintain resilient, affordable insurance markets.”
‘Better data means better decisions’
ICNZ chief executive Kris Faafoi says the organisation has invested in a platform called Te Pou Inihua, a new industry data platform that aims to improve understanding of risk, support evidence-based policy and strengthen public confidence in the insurance system.
“Better data means better decisions,” Faafoi says.
In its review, ICNZ says this platform; “will change the way the insurance industry will be able to advocate, engage and innovate to ensure the sustainability of the sector and the protection of communities in New Zealand”.
“New Zealand faces growing and interconnected risks, including climate change, affordability pressures, resilience challenges, and access to insurance cover. Addressing these issues requires sector‑wide insight, not fragmented or partial views.”
Faafoi says: "Te Pou Inihua will provide a trusted, aggregated view of insurance insights to inform government, communities and the sector as we navigate increasingly complex risks."
‘Reducing risk upfront’
Faafoi says: "Insurance plays a critical role in helping New Zealanders get back on their feet after disasters. However, we all know it’s better for New Zealand to work collectively to act before disaster strikes, rather than pick up the pieces afterwards.”
"Reducing risk upfront through smarter planning, resilient infrastructure and better information is essential if we are to protect communities and sustain access to insurance over the long term.”
While the Government’s National Adaptation Framework was a vital first step, Faafoi says; “it’s time to move the dial from good intentions to real action”.
With 2026 being an election year, Faafoi says maintaining momentum on adaptation and building an enduring cross-party consensus would be critical.
"New Zealand is at a pivotal point. The direction is increasingly clear, but delivery now matters. Communities facing repeated flooding or storm damage cannot afford delay."
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