In this report, WSP and the Helen Clark Foundation address the urgent challenge of residential insurance retreat in Aotearoa New Zealand due to rising climate risks. The report calls for a national discussion on the impacts of climate change on insurance affordability and accessibility, particularly as more insurers adopt risk-based pricing for flood-prone areas.

What to expect in this report: With climate-related hazards such as floods and coastal erosion on the rise, premiums are expected to increase substantially. These higher costs may lead some households to reduce or drop insurance cover altogether, while insurers may be forced to limit cover in high-risk locations. Without proactive policy measures, vulnerable communities could face unaffordable premiums or a lack of cover entirely.

Protecting our communities: The report serves as a wake-up call to policymakers, urging them to ensure insurance remains accessible and affordable for all New Zealanders. It provides key insights and recommendations to safeguard our most vulnerable populations from the growing impact of climate change on insurance.

Policy recommendations for accessibility: To mitigate the impact of rising insurance premiums, the report suggests a strategic approach, including public-private collaboration and effective policy interventions that can help stabilise insurance costs for communities most at risk.

Learning from global examples: The report also examines international responses to climate-related insurance challenges, offering valuable insights into policy options that could inform New Zealand’s own approach.