International Markets Show Unprecedented Confidence In NZ’s Natural Hazards Insurance Scheme

Natural Hazards Commission Toka Tū Ake (NHC) has secured a significant boost in reinsurance protection for New Zealand, with $10.3 billion locked in from 1 June 2025 to help protect homeowners from the impact of natural hazards.

This is a $1.15 billion increase from last year’s total reinsurance cover and includes $225 million from a multi-year catastrophe bond placed in 2023.

NHC Chief Executive Tina Mitchell explains, “one way we ensure there is funding available to pay claims for natural hazards damage is by purchasing reinsurance - insurance for insurers.”

“All insured homeowners across New Zealand contribute levies to the scheme. We use a proportion of those levies to purchase reinsurance cover at a national level,” she says. “If a significant natural disaster should happen and costs exceed $2.2 billion, the scheme can then access up to an additional $10.3 billion for settling homeowners’ claims.”

Reinsurance companies operate in a global market and decide where to offer support based on the risk profile of the country, the reputation of the organisation and commercial considerations.

“The scheme is held in very high regard globally. Our long-term investment in research and modelling means we can give reinsurers a transparent understanding of the risks they are insuring.” says Tina. “We are pleased to secure this level of reinsurance for New Zealand.”

“International markets also value the scheme’s commitment to community resilience,” she says. “By funding science and research, then translating that into insights that can be used by decision-makers, we are supporting better building standards, decisions on where new homes are built and government planning.”

NHC last claimed on its reinsurance programme after the Canterbury earthquakes, with approximately $5 billion of costs covered by reinsurers.

“We can’t change the natural hazards we live with, but we can be prepared. Ensuring we have access to the right financial support provides peace of mind for New Zealand homeowners.”

About the Natural Hazards Commission

The Natural Hazards Commission Toka Tū Ake exists to help New Zealanders prepare for and recover from the impact of natural hazards. One of the ways we do this is by providing natural hazards insurance for homes and residential land.

Homeowners have access to our scheme if they have an insurance policy with fire cover. The premium paid to insurers includes a Natural Hazards Insurance Levy, which is the amount homeowners pay for this cover.

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