New Zealanders Have Rising Concerns About Insurance Costs As Financial Pressures Mount

New insights reveal insurance is a growing financial burden for New Zealand households, as trust in the industry dips and climate pressures loom.

Insurance has jumped to the fourth most significant financial pressure for households, behind housing, food and household debt, marking a notable rise from sixth place in October 2024. This shift reflects a growing sense of strain as premiums continue to climb across house, contents, car and health insurance.

At the same time, trust in the insurance industry is falling, based on results of the latest Consumer NZ Sentiment Tracker survey of more than 1,000 New Zealanders.

“Insurance is meant to provide a safety net, but for many people, it’s becoming increasingly difficult to access. When you add the complexity of policies and the lack of transparency, it’s easy to understand why trust in the industry is falling,” says Rebecca Styles, Consumer investigations team leader.

Insurance affordability now in focus

Consumer’s upcoming report on house and contents insurance will delve deeper into these issues, exploring how rising premiums are affecting consumers’ ability to access appropriate cover. With the effects of climate change increasing risk and, in turn, premiums, more New Zealanders are feeling financially exposed.

“We’re hearing more and more from consumers who feel they’re being priced out of essential cover,” Styles says.

Interestingly, this comes as climate change concerns are cooling. Fewer New Zealanders now rank climate change as one of the top three most pressing issues — now at 12% (down from 15% in January and 17% a year ago), as more immediate pressures take priority.

Cost of living still top concern

The cost of living remains the number one issue for New Zealanders, with 65% of respondents identifying it as their top concern – a new high. Financial pressures across housing, food, debt and now insurance continue to weigh heavily.

Trust in the insurance sector drops

As premiums rise, trust in the insurance sector has taken a hit. More people now say they distrust insurers than trust them – a reversal from previous sentiment tracking and part of a broader decline in trust across sectors such as healthcare and energy.

Consumer warns that the decline in trust signals a need for the insurance industry to do more to demonstrate value, transparency and fairness in its offerings.

Climate risks compound affordability issues

With climate change increasing the frequency and severity of weather events, insurance affordability is a growing concern. Many New Zealanders living in high-risk areas are already facing pricier premiums or are being denied insurance altogether.

“Our upcoming report will highlight how the affordability of house and contents insurance impacts resilience in Aotearoa,” Styles says.

Note

The Consumer NZ Sentiment Tracker is a quarterly nationally representative survey of 1,000 New Zealanders. It provides a snapshot of public opinion on key consumer issues, including financial wellbeing, trust in institutions and sector-specific sentiment.

The winter issue of Consumer magazine has a focus on insurance and will be on newsstands Monday 9 June 2025.

The Consumer website includes insurance buying guides for car, house and contents and travel.

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