New Zealanders are becoming increasingly concerned that insurers may withdraw cover from high-risk areas as the impact of climate change intensifies.

Speaking today at the Insurance Council of New Zealand’s annual conference in Auckland, Stephen Mills, the Director of UMR Research – which is also the pollster for the New Zealand Prime Minister – said 25% of residents are “very concerned” about this scenario and 50% “concerned”.

Asked if it would be fair for insurers to withdraw, 59% said it isn’t and is “typical of insurance companies looking to maximise profit”.

The same group believes insurers should continue to provide cover in high-risk areas, especially when they have existing policies.

Mr Mills says there is a significant increase in concern about climate change.

More than half of the New Zealanders polled said they are concerned, with 25% very concerned. More women than men expressed extreme concern, along with Labour Party and Greens supporters.

He says an interesting change has developed around what is to blame for climate change. Nearly 70% say it’s because of human activities – a number that has grown from previous polls.

While the public is becoming more concerned, few have confidence in the world’s ability to deal with the issue.

Some of the speakers at the conference focused on the physical issues of climate change, but Sarah Barker, a Special Counsel at law firm Minter Ellison Australia, alerted delegates to the economic transition risks and liability consequences.

She says market impacts are being driven by responses to technology, shifting social preferences and market stakeholder expectations.

Major investors, including insurers as investors as well as investment companies like Blackrock, banks like CBA, and financial raters like S&P, see climate change as a leading economic/financial risk and are exerting pressure on companies to act on the likely impacts of climate change on their businesses and communities.

Ms Barker says court actions alleging negligence and misleading disclosures on carbon emissions are another danger.

Failure to mitigate over a number of decades will see “tobacco-style litigation” against major carbon-producing companies that have been in climate-change denial.

Financial institutions are not immune, she says, and many may be sued for their financial support of polluters.

“We have seen a huge increase in shareholder class action against companies for alleged failure in climate change limitation,” Ms Barker said.

Rowan Douglas, the CEO Capital, Science and Policy Practice at Willis Towers Watson in London, was something of a cheerleader at the conference, saying New Zealand is the “poster child” on the blending of public policy and economic features on climate change.

“New Zealand is there to teach the world how to use insurance with public policy to meet the challenges of climate risk.”

However, he says New Zealand, which has agriculture as the basis for much of its economy, must confront its emissions issue.

Suncorp New Zealand announced today it has joined the Climate Leaders Coalition, a collective of 70 New Zealand businesses that are committed to tackling climate change and helping New Zealand transition into a low emissions economy.

“Being part of the Climate Leaders Coalition represents our commitment to view climate change as an opportunity to innovate and create a positive future for New Zealanders,” Suncorp New Zealand CEO Paul Smeaton said.