Natural Hazards Commission (NHC) has secured a significant boost in reinsurance protection for New Zealand, with NZ$10.3bn ($6.2bn) locked in from 1 June 2025 to help protect homeowners from the impact of natural hazards.
This is an NZ$1.15bn increase from last year’s total reinsurance cover and includes NZ$225m from a multi-year catastrophe bond placed in 2023, the agency said in a statement.
NHC chief executive Tina Mitchell explained, “One way we ensure there is funding available to pay claims for natural hazards damage is by purchasing reinsurance — insurance for insurers.”
“All insured homeowners across New Zealand contribute levies to the scheme. We use a proportion of those levies to purchase reinsurance cover at a national level,” she says. “If a significant natural disaster should happen and costs exceed NZ$2.2bn, the scheme can then access up to an additional NZ$10.3bn for settling homeowners’ claims.”
Ms Mitchell added, “The scheme is held in very high regard globally. Our long-term investment in research and modelling means we can give reinsurers a transparent understanding of the risks they are insuring.
NHC last claimed on its reinsurance programme after the 2010-2011 Canterbury earthquakes, with approximately NZ$5bn of costs covered by reinsurers.
NHC is a New Zealand Crown entity whose goals are to reduce the impact of natural disasters on people and property.