IAG says New Zealanders hold a “conflicting set of expectations” on insurers’ obligation to cover locations facing higher risk of natural disasters.  

In the company’s recent poll on climate change, 60% of respondents agreed insurers should incentivise risk reduction by making it more difficult to obtain cover for high-threat homes, and 67% said it was fair to refuse cover for a new customer in an unsafe location.

About 71% agreed they would have to pay more if they lived in a more perilous place, with only 17% approving of having increased premiums to subsidise those at greater risk.  

Some 45% said paying only for the risk they faced was the fairest way to set premiums.  

The insurer says the findings contradict the prevailing belief that insurers should keep as many homes insured as possible – a statement with 74% backing.  

On climate change, 78% of respondents attributed responsibility to the government; only 28% thought the government’s response was sufficient.  

“These views reflect the fact that New Zealand is rapidly approaching a fork in the road,” IAG said.  

“On one path, we will fully confront the challenge of our hazards and place greater focus and investment in risk reduction, thereby making it possible to keep more people insured.  

“On the other, we will shy away from the challenge and people will find it more expensive and difficult to insure their homes, and some may even find their home is uninsurable.”  

IAG warns the country is currently “heading towards this second path. We cannot afford to go down it if we want to protect our most exposed communities, and if we want to avoid the drag that hazards have on our economy and its growth.”  

See more on the survey here. 

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