Insurance bodies of Australia and New Zealand sign pact as disaster losses rise

Both countries face increasing risks from extreme weather, cyber threats and supply disruption.

The Insurance Council of Australia (ICA) and the Insurance Council of New Zealand (ICNZ) have signed a memorandum of understanding to establish the Resilient Insurance Markets Initiative.

The agreement formalises the long-standing relationship between the two industry bodies and comes as Australia and New Zealand face increasing risks from extreme weather, cyber threats, geopolitical instability, supply chain disruptions and advances in artificial intelligence.

The two organisations said both countries experience some of the highest per capita natural disaster losses globally, with costs continuing to increase.

Under the initiative, the ICA and ICNZ will work together to share insights on public-private risk reduction measures, coordinate advocacy efforts to improve community resilience, and support regulatory alignment where it can improve productivity and consumer outcomes.

The partnership will include regular bilateral engagement, policy coordination and knowledge sharing between the two organisations.

ICNZ chief executive Kris Faafoi said New Zealand remained highly exposed to growing disaster risks and that investment in resilience was becoming increasingly important.

He said every dollar invested in resilience before a disaster could generate between $5 and $8 in avoided losses.