Insurance Council chief executive Kris Faafoi. Photo: RNZ / Angus Dreaver
The Insurance Council is encouraging help for property owners to maintain insurance coverage at an affordable price, as increasing risks push costs higher.
The council's annual review for 2024 indicates global insurance premiums rose 30 percent last year as global losses exceeded $300 billion.
Despite recent increases in premiums, council chief executive Kris Faafoi said there were signs premiums were stablising as inflation eased.
However, he said it was critical for communities and property owners to continue to take steps to mitigate risks caused by extreme weather events, such as flooding.
The review estimates 675,500 New Zealanders live in harm's way, with 72,000 potentially threatened by sea level rise.
"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," Faafoi said.
He said the recently passed Contracts of Insurance legislation will help by setting out the industry's role and consumers' rights at critical times.
In addition, he said the industry supported the government's pledge to introduce legislation on climate adaptation this year.
"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," Faafoi 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."
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