A quick look at the trends, changes, and challenges shaping NZ’s insurance scene.

It’s been another big year for insurance in New Zealand. With 2025 winding down, we’ve taken a step back to see where the industry’s at, where it’s going, and what it all means for everyday Kiwis and businesses.

Think of this as your annual insurance weather report: a few sunny patches, some grey clouds, and the odd thunderstorm.

Climate Risk Is Shaking Things Up

Let’s start with the big one – climate. More extreme weather is hitting us more often, and it’s having a real impact:

• Over $1.2 billion was paid out in claims for flooding, slips, and storms this year alone.
• Areas like Northland, the West Coast, and Tasman are being flagged as “high risk” by reinsurers.
• Some insurers are now limiting cover – or saying no altogether – in exposed coastal and low-lying spots.

What does that mean for you? In high-risk areas expect rising premiums, higher excesses, and in some cases, insurance just not being an option for certain risks.

House Insurance: Not So ‘Set and Forget’ Anymore

If you’ve renewed your home insurance recently, you might’ve noticed a hefty jump in price. Nationwide, premiums are up 10–15% over the last 2 years – and even more in flood-prone areas.

What’s behind the spike?

• Higher building and repair costs (hello inflation, compliance and supply chain delays).
• Reinsurers demanding higher rates or pulling back from risky zones.
• Smarter pricing models using data to pinpoint location-specific risks. Yep, your postcode now plays a big role.

Good news? One major insurer has actually dropped their premiums recently (yes, you read that right!).

Hot tip: Regularly check your sum insured – building costs are rising fast, and your policy might not be keeping up. Selecting a higher deductible can save you hundreds of dollars. We can help with that.

Commercial Insurance: A Bit of a Mixed Bag

For businesses, the insurance landscape is a bit all over the place:

• Cyber insurance is now a must-have, with ransomware and data breach claims doubling in just two years. But the most common issue? Fake invoices (aka social engineering).
• Liability insurance is still fairly steady – unless you’re in high-risk sectors like finance or forestry.

Insurers are also asking more of businesses before offering full cover – especially around risk management like flood defences or security.

Life & Health Insurance: Slow but Steady Growth

Post-COVID, more Kiwis are seeing the value in protecting their health and income – but there’s still work to do.

What we’re seeing:

• Around 1.5 million people now have private health cover – mostly to skip public system delays.
• Life insurance uptake remains low, especially among under-40s. Why? Many assume it’s expensive or complicated.
• Trauma and income protection policies are becoming more popular, especially with self-employed people.

Insurers are also getting more digital and proactive – think wearable tech, wellness apps, and discounts for healthy habits.

Going Digital – and Facing More Scrutiny

The industry is moving fast on the tech front:

• AI and automation are speeding up underwriting and claims.
• New rules from the FMA mean insurers need to treat customers fairly, be transparent, and make advice easier to access.
• Regulators are watching closely – especially around affordability, disclosure, and complaints.

Looking Ahead to 2026

Here’s what’s likely to make headlines next year:

• More Kiwis might find insurance too pricey or simply not available – especially in high-risk areas. Expect growing talk about government support or schemes.
• Climate adaptation: “Managed retreat” and tougher building standards are likely on the horizon.
• Your premiums could increasingly reflect where you live, how you drive, or how well you manage risk.

Final Thoughts

The insurance world in NZ is changing fast – and it’s not as simple as it used to be. Whether you’re a homeowner, renter, business owner, or just trying to figure out what’s in your policy, staying informed is key.

Don’t wait until the next storm to find out if you’re properly covered.

Stay dry, stay safe – and as always, reach out if you’ve got questions!

– The JenBro Team

© Jenbro 2025