Following a series of severe weather events across Canterbury and Wellington, insurance providers are emphasising the importance of safe and timely recovery efforts.
The Insurance Council of New Zealand (ICNZ) is advising residents to begin damage mitigation and cleanup operations as conditions permit, highlighting that early steps can aid the claims process.
“Insurers recognise that in the early stages of recovery, many people may not be able to quickly lodge a claim,” said ICNZ chief executive Kris Faafoi.
Insurers are urging policyholders to document affected belongings and undertake only those repairs that ensure immediate safety. They recommend photographing damaged items, retaining receipts for emergency repairs, and contacting insurance providers as soon as possible.
ICNZ has issued a checklist to help affected homeowners and renters navigate the recovery process. Key steps include:
For homes rendered uninhabitable, temporary housing assistance may be available through standard contents or home policies.
ICNZ encourages affected residents to consult their insurers about available options.
“Be assured – your insurer is ready to help as soon as you’re able to get in touch to lodge a claim,” Faafoi said. “Your insurer will also be the main point of contact for all claims, including those under NHCover, which they manage on behalf of the Natural Hazards Commission (NHC). If your property has been affected, let your insurer know. They can help organise assessments for both your home and any damaged land.”
In light of increasing losses from weather-related events, insurers are re-evaluating risk modelling approaches.
During industry briefings hosted by ICNZ and the BusinessNZ Energy Council, experts presented findings from a QBE-backed climate science review urging a transition from historical loss models to data-informed climate risk assessment.
Dr Joanna Aldridge from QBE and Dr Rob Bell of Bell Adapt shared insights on weather threats such as cyclones, floods, and wildfires. Aldridge stressed that greater data sharing among insurers and stakeholders could enhance preparedness.
“By sharing insights, we’re supporting a shift from response to readiness,” she said. “From reacting to extreme events to preparing for them and reducing their impact. That’s the role insurers can and should play.”
Under New Zealand’s mandatory climate-related financial disclosures regime, large insurers and financial firms are now required to report their climate exposure. Initial disclosures have centred on qualitative insights, with future obligations expected to include quantitative data.
Bell pointed out that New Zealand’s geographic characteristics make it necessary for insurers to adopt more granular, locally focused risk models.
Meanwhile, IAG New Zealand released findings estimating national spending on natural disaster response since 2010 at $64 billion. The majority of that funding has gone toward recovery efforts, with just 3% directed toward risk mitigation.
Amanda Whiting, CEO of IAG New Zealand, noted that such spending trends challenge long-term economic resilience.
The Natural Hazards Commission’s latest survey found that 71% of New Zealanders have taken steps to reduce hazard exposure at home – up from 56% the previous year. Additionally, 88% of homebuyers now consider environmental risk when selecting properties.
AMI, State, and NZI insurers reported increased customer concern over extreme weather. More than 3,500 claims were filed during spring and summer 2024 alone, covering 14 separate weather-related events.
These developments reflect a rising urgency within both the public and the insurance sector to adjust to evolving climate challenges and enhance community resilience.
