The Insurance Council of New Zealand (ICNZ), otherwise known as Te Kahui Inihua o Aotearoa, has released its annual review for 2024.
“2024 has been an important year for insurance even as New Zealand experienced fewer major events,” ICNZ chief executive Kris Faafoi said.
“The cost of living remains top of mind for New Zealanders. Following the impact of the extreme North Island weather events, there are signs premiums are stabilising as some pressures such as global reinsurance rates and inflation have been easing. Insurers are continuing to look at ways to help their customers manage their own cover as cost-effectively as possible.”
Mr Faafoi also said that the “long overdue” Contracts of Insurance Bill was passed in November 2024 and will make insurance legislation fit for purpose in a modern world.
He said, “The new law strikes a balance of consumers having much clearer rights at critical times and allows the fundamentals of insurers to be maintained.”
While 2024 was relatively calm for major events In New Zealand, he also noted the opportunities and challenges for the insurance industry mirror those for the country, such as how the sector can collectively manage the risks from a changing climate and protect Kiwis against unexpected events.
“We are committed to leading and elevating the conversation on identifying and reducing risk to safeguard our communities and ensure insurance is affordable and accessible,” he said.
“By prioritising and embedding resilience in decision making processes and making sure we don’t build in dumb places while also investing in adaptation, New Zealand can reduce natural hazard risks and protect the wellbeing of our communities.”
He also highlighted that there will be some complex and difficult conversations ahead and it will require a collaborative approach led by government to protect our communities from the impact of climate change.
“The insurance sector supports the government’s pledge to introduce legislation on climate adaptation this year. We are committed to working in partnership with government and other groups to find solutions to ensure better outcomes for Kiwis,” Mr Faafoi said.
“By reducing the insurance protection gap we can keep communities safe, reduce the costs to taxpayers and ratepayers, and maintain insurance capacity and affordability.”
ICNZ’s Annual Review 2024 can be found here.