New Zealand experienced minimal insured losses from natural disasters in 2024, marking a stark contrast to the previous year’s record-breaking events, according to Aon’s latest Climate and Catastrophe Insights Report.
While this decline has provided short-term relief to the insurance industry, sector leaders and government officials emphasise the need for continued investment in risk mitigation and climate adaptation.
The report, published by Aon plc, revealed that insured catastrophe losses in New Zealand dropped from over A$3.6 billion in 2023 to nearly zero in 2024. In comparison, global economic losses from natural disasters surpassed A$562 billion – about 10% higher than the annual average recorded since 2000.
James Knight (pictured), head of APAC for Aon’s View of Risk Advisory, described the downturn in losses as a notable shift from 2023’s costly weather events.
“Last year was a welcome relief from 2023 where we had both the Auckland Anniversary weekend storms and ex-tropical cyclone Gabrielle in short succession, driving the highest insurance losses from weather events on record in the country,” he said.
However, insurance premiums remain elevated across the country. Knight pointed to continued global inflation and supply chain constraints as factors keeping pricing high.
“As with other products and services, insurance premiums remain high following significant global inflation in recent years,” Knight said. “Given the high cost of insurance is unlikely to improve in the short term, it is vital to continue to focus on improving the resilience of homes and businesses to reduce some of the vulnerability in built environments.”
Knight urged property owners to use the current period of reduced catastrophe activity to implement basic preventive measures – which a lot of New Zealanders already do, according to new research from Natural Hazards Commission Toka Tū Ake (NHC).
The study found that 71% of respondents had implemented protective measures for their property or belongings – a 15-percentage-point increase from the previous year and the highest level recorded.
Meanwhile, Parliament has begun considering legislation to establish a national climate adaptation framework.
The initiative follows a Finance and Expenditure Committee inquiry, which recommended clarifying governance roles, improving public access to climate risk data, and creating more consistent funding approaches to manage exposure to natural hazards.
Committee chair Cameron Brewer said the inquiry reflected growing concern over the economic toll of increasingly frequent extreme weather events, referencing past storms that impacted infrastructure and communities.
The Insurance Council of New Zealand (ICNZ) has welcomed the direction of the policy. Chief executive Kris Faafoi said a structured approach to adaptation would offer clearer expectations for all stakeholders, including insurers and local governments.
