New Zealand Insurance Market Update

The softening market is good news for businesses and here are some of the main reasons behind this positive shift:

• With fewer severe weather events in New Zealand over the past 18 months, the claims environment has become more manageable for insurers. This means that insurance premiums better reflect the actual claims made.

• More competition among insurance providers.

• Bringing in more investment money, especially from international sources, helps insurance providers cover a wider range and variety of risks.

The huge number of claims from the Auckland Anniversary floods and Cyclone Gabrielle in early 2023 led to a rise in insurance premiums. Insurance costs went up by 14% in the year leading to June 2024. *

We are now seeing these favourable market trends contributing to a period where premium increases are slowing, and insurers can offer more competitive pricing and greater coverage options. Some insurers are even renewing policies at last year’s rates on a case-by-case basis.

As the market enters a softer phase, there is an increase in insurance availability, making it easier for businesses to find the insurance cover they need. This increased accessibility supports businesses to grow and expand more confidently, driving economic growth.

Your broker may be able to offer a wider range of insurance options and potentially more competitive pricing. It’s an ideal time to review your insurance needs.

It remains essential to secure the right insurance cover, and your broker is well positioned to provide quality advice, ensuring that the cover is tailored to meet your specific needs.