The poll, conducted by Ipsos in May 2025 on behalf of IAG New Zealand, showed that nine in 10 respondents expect an uptick in extreme weather events, including storms, inland flooding, and coastal inundation due to sea level rise.
As climate risk becomes more visible across the country, the public is increasingly focused on how insurance pricing reflects these threats. Many want premiums to match individual exposure to risk, while still ensuring access to cover remains viable across high-risk communities.
Amanda Whiting (pictured), chief executive of AMI, State, and NZI, said the findings underscore a shifting awareness among consumers.
“Recent and regular weather events are still fresh in people’s minds and continue to have a profound effect on the country, highlighting for many the very real impact that our changing climate is having on our communities,” she said.
The survey found 60% of respondents support premium adjustments that reflect a policyholder’s exposure to risk. Another 71% said they accept that residing in a high-risk location may lead to higher insurance costs, although only 17% backed subsidising coverage for those areas.
Only 10% of respondents said a flat premium model – where everyone pays the same regardless of risk – was the fairest. Conversely, 45% said the most equitable approach is charging people based on the actual risk they face.
Whiting noted that this poses a challenge for insurers seeking to balance fairness, affordability, and broad coverage.
“Continuing to meet people’s expectations of fair pricing while keeping our most exposed communities insured will become ever more difficult to achieve without urgent and significant risk reductio,” she said. “We are fast approaching a crossroads and need to make an important decision about which path we take.”
Separate analysis commissioned by IAG revealed that New Zealand has spent an estimated $64 billion responding to natural hazards since 2010, with 97% of government funding directed at post-disaster relief rather than risk reduction.
Whiting said the country needs to re-evaluate how it approaches disaster spending.
“These costs represent a drag on our economy and work against the growth and financial strength required to support the needs and aspirations of New Zealanders,” she said.
Presentations delivered at recent industry forums by QBE and Bell Adapt argued that insurers need to expand their use of climate science and move beyond traditional catastrophe models.
Events like the 2023 Auckland floods and Cyclone Gabrielle, each causing more than $2 billion in insured losses, have highlighted the limitations of past modelling frameworks.
The Natural Hazards Commission (NHC) reported a significant increase in homeowner preparedness, with 71% of respondents saying they had taken steps to fortify their homes – up from 56% the previous year. Prospective buyers are also factoring hazard exposure into property decisions, with nearly 90% indicating it’s a key consideration.
The survey conducted by AMI, State, and NZI also found strong public backing for resilience initiatives:
Whiting said that without action to reduce underlying risks, maintaining broad insurance access will be increasingly difficult.
“The need for action is clear. New Zealanders want to see smarter decisions about where and how we build and more investment in infrastructure and natural solutions to protect our homes, businesses, and communities,” she said.
