The Natural Hazards Commission Toka Tū Ake (NHC) has placed a record $12.3 billion in reinsurance cover for the 2026 policy year, up $2.1 billion from the previous year’s programme. The 20% increase was completed at a lower cost relative to last year’s placement. \
The commission draws its reinsurance budget from levies collected through insured homeowners’ annual home insurance premiums, which flow into the Natural Hazard Fund. Following a major natural hazard event, the reinsurance programme provides the funding needed to help settle claims. NHC chief executive Tina Mitchell pointed to the financial implications for homeowners. “Securing increased reinsurance cover means New Zealand is better placed to respond financially when a major natural hazard event occurs. It provides confidence that funding will be available to help pay claims and support recovery, while helping protect the Crown’s balance sheet,” Mitchell said.
The growth of the programme carries weight given how international reinsurance capital is deployed. NHC’s placement attracted increased commitments from global reinsurers, a result Mitchell attributed to several factors underpinning the scheme’s standing in international markets. “International reinsurers have choices about where they put their capital at risk. Their willingness to increase their support for NHC reflects the strength of our scheme, the quality of our natural hazard science and modelling, our ongoing investment in resilience, and the transparency of our long-standing engagement with reinsurers,” Mitchell said. She also noted the broader significance of sustained international participation. “This continued support from global reinsurers is an important part of the financial protection available for New Zealanders,” she said.
When a homeowner in New Zealand takes out a home insurance policy, a portion of their annual premium goes toward a levy that feeds into the Natural Hazard Fund. NHC draws on that pool to purchase reinsurance cover from international markets each year. If a major natural hazard event generates claims, the reinsurance programme provides the funding needed to meet those obligations. The $12.3 billion figure represents the total protection available during the policy year. Mitchell said the placement gives the country a clearer path to financial recovery following large-scale events. “This programme provides peace of mind that New Zealand will have access to the funding needed to recover from major natural hazard events and support affected communities when they need it most,” she said.
The reinsurance result sits alongside a separate but related development. In February 2026, NHC released its first Statement of Investment Policy and Objectives (SIPO), outlining a transition toward a more diversified, long-term investment approach for the Natural Hazard Fund. The fund currently holds approximately $670 million, rebuilt gradually after significant drawdowns during the Canterbury and Kaikōura earthquake sequences. NHC has previously described its approach to fund management as deliberately conservative, built primarily around cash and short-term bank deposits – a stance the SIPO moves away from.
NHC chief financial officer Chris Chainey outlined the direction of the new framework. “The new SIPO outlines the risks we’re prepared to take and the outcomes we are aiming for over the long term. We’ll use a staged approach to diversification that supports sustainable growth, while continuing to manage risk carefully,” Chainey said. The SIPO sets a target of returns exceeding inflation by 2.5% per annum over rolling five-year periods. Together, the record reinsurance placement and the new investment framework reflect NHC’s stated objective of ensuring funding is available to meet the cost of future natural hazard events in New Zealand.
