Consumer NZ’s latest Sentiment Tracker reveals insurance is now the fourth biggest financial pressure for households, behind housing, food, and debt — up from sixth place in October 2024. The rapid rise reflects widespread frustration as premiums for house, contents, car, and health cover continue to climb.
At the same time, public trust in the insurance industry is collapsing. More New Zealanders now say they distrust insurers than trust them, a reversal from previous trends.
“Insurance is meant to be a safety net, but for many it’s becoming unaffordable and inaccessible,” said Consumer NZ investigations team leader Rebecca Styles. “When you combine complex policies with a lack of transparency, it’s no surprise trust is plummeting.”
Consumer’s upcoming report on house and contents insurance will explore how rising costs are locking people out of essential protection, particularly as climate change increases the risk of weather-related disasters.
“We’re hearing from more and more people who feel they’re being priced out of basic cover,” Styles said.
The latest data also shows climate change has fallen down the list of top national concerns, with just 12 percent of respondents citing it as a key issue — down from 17 percent a year ago — as financial stress takes priority.
With 65 percent of respondents identifying the cost of living as their number one concern, the pressure on household budgets is intensifying.
Styles said the insurance industry must urgently rebuild public trust by demonstrating value and fairness.
“New Zealanders need clarity, not confusion. Insurance should protect people — not push them closer to the edge.”
Broadcaster Chris Lynch is an award winning journalist who also produces Christchurch news and video content for domestic and international companies. This article was originally published by Chris Lynch Media and is published here with kind permission.
“Insurance is meant to be a safety net, but for many it’s becoming unaffordable and inaccessible,” said Consumer NZ investigations team leader Rebecca Styles. “When you combine complex policies with a lack of transparency, it’s no surprise trust is plummeting.”
Consumer’s upcoming report on house and contents insurance will explore how rising costs are locking people out of essential protection, particularly as climate change increases the risk of weather-related disasters.
“We’re hearing from more and more people who feel they’re being priced out of basic cover,” Styles said.
The latest data also shows climate change has fallen down the list of top national concerns, with just 12 percent of respondents citing it as a key issue — down from 17 percent a year ago — as financial stress takes priority.
With 65 percent of respondents identifying the cost of living as their number one concern, the pressure on household budgets is intensifying.
Styles said the insurance industry must urgently rebuild public trust by demonstrating value and fairness.
“New Zealanders need clarity, not confusion. Insurance should protect people — not push them closer to the edge.”
Broadcaster Chris Lynch is an award winning journalist who also produces Christchurch news and video content for domestic and international companies. This article was originally published by Chris Lynch Media and is published here with kind permission.
5 comments:
Insurance premiums are being calculated on a scam.
The climate has always changed and always will. Can’t get fire and earthquake cover following Gabrielle and yet they have nothing to do with a flood event.
The whole system needs a rethink.
It’s worth adding that insurance is (and has always been) particularly high in NZ because the underwriting lacks valid individual risk assessment. By grouping all Kiwis together in what is effectively one high risk scheme, it’s the average Joe Bloggs who takes care of his home and car etc who suffers most. The market is ripe for an entry of a professional underwriter based here, not overseas. But let’s be honest, that ain’t gonna happen because a global economic crash has already begun. Meanwhile, the more people who pull out of this flawed ‘group scheme’ the higher the cost of premiums for everyone else. It’s a house of cards.
“ climate change increases the risk of weather-related disasters.”
This is not true. It is true the Niwi especially would engage in selective historical record cherry picking to try and give this impression.
Deaths from weather events are at an all time low & they are not more frequent.
Thank you Chris. Insurance flies under the radar. They are like an insatiable monster hiding just out of sight and we don't want to draw it's attention. They are not accessible or accountable unless you pursue them hard. Like all corporates, they are set up to succeed at the customers cost. And boy, does insurance cost. When the climate rort is finally exposed, will premiums come down? No because Councils have let developers build in risky places so insurance customers keep paying and paying.
I can't imagine a NZ insurer/ underwriter based only in NZ not enough depth in the market. An offshore insurer/underwriter would find NZ too small to focus on as a stand alone individually assessed market. And too complicated with maori 'language', maori concessions, NZD ( not a significant international currency) and a complicated regulatory environment.
Frankly, NZ is lucky with what it gets warts and all.
The alternative - an ACC structure for home and general insurance based on tax payer dollars and graded mandatory contributions.
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