Will you be able to get home insurance by 2035?

Our research shows home insurance is becoming increasingly unaffordable for some New Zealanders. As extreme weather events increase, insurance could soon be unavailable in more areas.

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This report identifies areas for improvement for regulators to improve the insurance market for homeowners. It calls for smarter planning to ensure house insurance remains a safety net that’s available for all New Zealanders.

Key findings

Costs have skyrocketed – Since 2000, the cost of house insurance has increased 916% (Stats NZ).
More people are dropping cover due to cost – Among those who don’t currently have house insurance, around 7% dropped it because of cost in 2022. By 2025, that percentage had more than doubled to 17%.
Insurance now ranks in the top four financial concerns for New Zealanders – sitting just behind housing, food and overcoming household debt.
Trust in insurers is low – Consumers report dissatisfaction with the claims process, delays in settlements and a lack of transparency when it comes to pricing.
Risk-based pricing lacks clarity – Consumers don’t have access to the data that determine their premiums and have no way to challenge the prices.
It’s hard to shop around – Comparison is difficult, online quotes aren't always available and options are limited, especially for homes in high-risk areas.
Insurers’ profits are rebounding – Despite payouts following weather events, insurers are showing strong profit margins. Trans-Tasman insurers appear to make more money in New Zealand than Australia.

Recommendations

Establish a national climate adaptation framework – The government should lead the development of a plan to help communities manage climate risks.
Better understand home and contents market competition – The Financial Markets Authority (FMA) should investigate insurance pricing for fairness. The Commerce Commission should carry out a market study into competition in the insurance sector.
Improve data transparency and accountability – Insurers should clearly explain how risk influences pricing and ensure policy updates are communicated in a transparent, timely manner.
Improve the overall claims experience – Insurers should communicate clearly with customers and complete claims in a timely manner.
Empower consumers with innovative policies and resources – Help homeowners access risk data and easily compare options. Insurers should incentivise homeowners to reduce the risk of flood damage to their properties.
Strengthen national coverage for communities – Review and expand the Natural Hazards Commission mandate to cover flood damage and better protect vulnerable communities.