In the aftermath of Cyclone Gabrielle and the Auckland Anniversary Floods, the New Zealand insurance market is undergoing a remarkable transformation. The combined havoc from these natural disasters, totaling over $2 billion in damages, has triggered a ripple effect on the industry. The ensuing renegotiations of reinsurance treaties are reshaping the cost dynamics of fire and general insurance, affecting businesses nationwide. Local insurers, contending with increased rates for international reinsurance, are passing on the impact to policyholders. This blog post aims to delve into the intricacies of these events, exploring the factors propelling the surge in insurance costs and offering insights to help businesses navigate this evolving landscape.

In the aftermath of Cyclone Gabrielle and the Auckland Anniversary Floods, the New Zealand insurance landscape finds itself at a critical juncture. The unprecedented damages exceeding $2 billion have set off a chain reaction within the industry, leaving insurers grappling with the need to reassess risk and negotiate reinsurance treaties. The severity of these natural disasters has significantly impacted the rates at which local insurers can secure reinsurance on the international market.

Reinsurance, a critical mechanism for insurers to manage risk, has become more costly as global reinsurers reassess their exposure to regions prone to such catastrophic events. The sheer scale of the damages incurred has prompted reinsurers to adjust their risk models, leading to higher premiums for insurers seeking reinsurance coverage. Consequently, this increase in reinsurance costs is now cascading down to local businesses, necessitating a reevaluation of fire and general insurance premiums.

The intricate dance between local insurers and their international reinsurers underscores the interconnectedness of the global insurance market. As insurers seek to fortify themselves against future uncertainties, businesses in New Zealand are left to grapple with the immediate and tangible impact on their bottom lines. Understanding these intricacies is crucial for business owners to make informed decisions about their insurance coverage and financial planning.

We will keep you ahead of the pack with information on these changes as they continue to unfold. We will further dissect the evolving landscape of insurance in New Zealand, examining how these events are reshaping risk assessment, policy structures, and the overall approach to managing the unpredictable nature of our environment. Stay tuned for insights, recommendations, and expert perspectives to help you navigate these challenging times.

We truly believe that the evolving landscape necessitates a proactive approach to insurance coverage and financial planning. At Plan and Protect, we pride ourselves on being a locally owned and operated business backed by PSC Connect, an ASX-listed company. This unique partnership ensures you benefit from personalized service and local support, coupled with the negotiating power and backing of a larger organization.


General Insurance Broker

Chelsea Harkin

Chelsea has been in the fire and general insurance industry since 2012. She has had a number of roles which has given her a wide range of knowledge from across the industry: From broker support and domestic and commercial brokering, as well as domestic and commercial underwriting.