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Storms drive up premiums in NZ

Increased storm activity in New Zealand is pushing up premiums for New Zealanders, according to the Insurance Council of New Zealand (ICNZ).

CEO Chris Ryan says there is little doubt insurance premiums will continue to rise because of the ongoing pressure of climate change.

Severe storms that hit the North and South Islands late last month are set to trigger insurance payouts of more than $NZ50 million ($39.4 million).

It follows a series of storms, floods, tornados, frosts and high winds that buffeted NZ last year proving costly for local insurers. (Flood is usually covered by NZ insurers.)

“Insurance companies have already moved to raise their premiums and this is likely to continue,” Mr Ryan said.

He says while NZ insurers are reluctant to raise premiums, payouts for climate-related events and the costs of repairs are putting them under pressure.