Most New Zealanders back risk-based pricing for climate-related insurance

60% agree insurers should raise premiums for properties facing higher risks.

Most New Zealanders support the use of risk-based pricing for insurance as the country faces mounting threats from climate change-related events, an IAG survey revealed.

According to the poll conducted by Ipsos in May 2025, 90% of respondents expect more extreme storms, 89% foresee more frequent and intense flooding, and 88% anticipate coastal flooding from rising sea levels. 

These concerns are driving demand for fairer premium structures and stronger incentives for risk reduction.

Furthermore, 60% agree insurers should raise premiums for properties facing higher risks.

Additionally, 45% believe it is fairest if people pay only for the risks they face, compared to 10% who think everyone should pay the same regardless of risk. 

Whilst 71% are willing to pay more if they live in high-risk areas, only 17% support subsidising premiums for others in such zones.

Amanda Whiting, CEO of AMI, State, and NZI, said growing weather-related damage has underscored the importance of balancing affordability with accurate pricing.

At the same time, there is strong support for keeping insurance accessible. Around 74% of respondents believe insurers should focus on keeping as many homes insured as possible.

House and contents insurance remains a priority, with 87% saying it is important to have.

The survey of 1,001 people carries a margin of error of ±3.1%.