Over two thirds of the participants in a survey in New Zealand are of the opinion that natural hazards such as earthquakes, flooding, and sea level rise have a significant impact on their property insurance premiums.
The new survey that includes the responses from more than 1,000 people, highlights widespread concern about both the affordability and accessibility of insurance in the face of increasing climate and natural hazard risks.
ICNZ chief executive Kris Faafoi said, “The survey results show that New Zealanders are highly aware of the pressures natural hazards and climate change are placing on insurance. We need a combined effort from government, councils and communities to reduce risks and ensure that insurance remains accessible.”
The major findings of the survey include:
• 67% of respondents said natural hazards impact their insurance premiums “a great deal” or “a fair amount.” This view was stronger among older New Zealanders, professionals, homeowners without mortgages, and those who had recently made a claim.
• Around 25% felt they did not have sufficient access to clear information about natural hazards when owning or buying a property. Wellington respondents were less likely than average to believe they had sufficient access.
• The top factors seen to impact the accessibility of property insurance were the occurrence of a major natural disaster in New Zealand and the growing risks of severe weather events.
• The most popular actions New Zealanders want to see taken to reduce the risk of insurance becoming unavailable include restricting building in high-risk areas and investing in stronger flood defences and infrastructure to protect against sea level rise.
Mr Faafoi said, “The findings underline the growing need for transparent hazard information, smarter land-use decisions and resilient infrastructure investment to maintain long-term insurance accessibility in New Zealand.”