New Zealand businesses are facing a worsening climate risk environment, with insurance data pointing to a surge in weather-related losses that is already reshaping how companies approach insurance cover and resilience planning, according to broker Gallagher Insurance NZ.
In an article, Gallagher said climate-related risk was increasing in both frequency and severity, reducing the time businesses have to assess their options and making decisions more urgent and complex.
The broker cited IAG’s Wild Weather Tracker for the 12 months to the end of February 2026, which recorded 46 storms, up from 29 the previous year, and 33,174 storm-related claims across IAG brands, a 256% year-on-year increase from 9,324 claims. The data showed that one in every eight days experienced a damaging storm, compared with one in 19 days over the previous 15 years.
Gallagher attributed much of the increase in New Zealand to three events: the October 2025 South Island windstorm, the February lower North Island storm, and ex-Tropical Cyclone Tam in April. Each event affected thousands of businesses simultaneously, overwhelming suppliers, tradespeople and loss adjusters, the broker said.
The company noted that the pattern extended beyond New Zealand. In Australia, extreme weather events generated A$4.8 billion in insured losses in 2025, a 727% increase on the previous year. Globally, Munich Re attributed 92% of natural catastrophe losses in 2025 to weather-related events, with insured losses exceeding US$100 billion for the seventh consecutive year.
Gallagher said the elevated loss environment could affect premiums even for businesses with no recent claims history, as insurance markets were responding to a global weather trend rather than individual loss performance.
The broker’s warning comes as New Zealand’s Climate Change Commission has highlighted climate-related hazards as among the country’s most significant long-term risks. In its 2026 National Climate Change Risk Assessment, the commission said climate change was already affecting infrastructure, communities and economic activity, and warned that delaying adaptation efforts would increase future recovery costs and disruption. The assessment called for earlier investment in resilience measures to help reduce the financial impact of increasingly frequent and severe weather events.
Industry groups have also raised concerns about the implications for insurance affordability and availability. The Insurance Council of New Zealand has argued that stronger adaptation and risk-reduction measures are needed to help maintain access to insurance in areas exposed to flooding, coastal inundation and erosion. The organisation said reducing vulnerability to natural hazards would help protect both households and businesses while supporting the long-term sustainability of insurance cover.
The broker described insurance as a commercial tool that could help businesses adopt more efficient, resilient and sustainable practices by protecting against downside risks to yield and margin. Without it, even sensible operational changes could become commercially unviable, it said.
Gallagher said insurers were increasingly assessing flood, coastal and weather exposure at the individual site level alongside rebuild costs, meaning two otherwise similar businesses could face very different terms based solely on location-specific risks. A documented exposure assessment supported by evidence of mitigation measures could influence pricing, capacity and policy terms, it said.
The increasing focus on site-level risk assessments comes as the government develops New Zealand’s first nationally consistent flood-risk mapping programme. The initiative is intended to provide businesses, property owners, local authorities and insurers with more detailed information about flood exposure and future climate-related hazards, NZ Herald reported. Policymakers have said the data will help support planning, investment and adaptation decisions as climate risks become more prominent across the country.
The broker advised businesses to develop a clear understanding of their exposure across physical locations, supply chain concentrations, long lead-time equipment and single-source dependencies before deciding which risks to reduce, retain or transfer.
Read more: Climate risk reshaping NZ insurance
