Farm Insurance NZ
Minister Jones described the situation as a “perfect storm” compounded by multiple cost drivers. He stated, “Insurance costs have risen over 16% in the last year. This is the biggest rise in over 20 years.” With these soaring rates, many households are at a crossroads, facing the difficult choice between insurance and underinsurance, or opting out altogether.
The Minister pinpointed several factors responsible for these rising costs. A global uptick in reinsurance rates, surging prices of building materials, and flawed urban planning are prime contributors. "In many instances, planning frameworks allow people to build and rebuild houses in the wrong places," Mr. Jones remarked. He stressed that increasing numbers of assets and people find themselves in high-risk zones.
In his address, Mr. Jones underscored the exacerbating role of climate change in intensifying these challenges. “The force multiplier here is climate change. It is real. It is here and now. And it is consequential,” he stated, signaling the looming threat of environmental changes.
Reports from InsuranceNews.com.au indicate a disproportionate impact on vulnerable communities in regions like Northern New South Wales, North Queensland, and the Northern Territory. Lower-income households, often lacking optimal insurance coverage, face heightened risks as they dwell in more susceptible areas. Minister Jones added, “Lower-income households are more likely to be underinsured. And they are more likely to be in harm’s way, which makes it a vicious cycle.”
The broader implications of climate change are starting to manifest with an increasing number of districts experiencing the consequential weight of environmental unpredictability. As more regions are engulfed by natural disasters, the ripple effects send insurance premiums soaring.
On a hopeful note, Mr. Jones addressed industry concerns about broker commissions and openly shared his skepticism about implementing a flood reinsurance pool. Though he aims to navigate these looming risks with concerted efforts, the pathway forward requires significant resilience and adaptation.
Amid these challenges, innovative measures could possibly alleviate some pressure. Collaborative planning involving governments, insurers, and communities can focus on adapting existing infrastructures and reassessing building regulations, particularly in disaster-prone zones. Effective solutions might combine enhanced warning systems, climate-resilient materials, and increased community awareness, all aiming towards mitigating impacts.
As the nation grapples with these evolving threats, stakeholders within the financial services and insurance landscapes must unite to address the pressing underinsurance problem head-on.
Published:Saturday, 26th Oct 2024
Source: Paige Estritori
| AUSactive and Health Partners Collaborate to Enhance Fitness Service Accessibility 13 Jan 2026: Paige Estritori AUSactive, Australia's peak body for the exercise and active health sector, has announced a significant partnership with Health Partners, a not-for-profit health fund with over 85 years of service to South Australians. This collaboration recognises eligible AUSactive Personal Trainers and fitness businesses as approved providers, allowing Health Partners members to claim benefits for personal training sessions, classes, and gym memberships under their Extras policy when part of a medically necessary health management plan. - read more |
| AIA Australia Teams Up with Peloton and Specialized to Encourage Active Lifestyles 13 Jan 2026: Paige Estritori AIA Australia, a leading life, health, and wellbeing insurer, has announced partnerships with global fitness company Peloton and premium cycling brand Specialized. These collaborations aim to provide AIA Vitality members with significant discounts and incentives to promote cycling, both at home and outdoors. - read more |
| Australian Insurers Achieve Record Profits Amid Rising Premiums 13 Jan 2026: Paige Estritori In 2024, Australia's insurance sector reported an after-tax profit of $6.1 billion, a significant increase from the five-year average of $2 billion. This surge is primarily attributed to substantial premium hikes and a relatively calm year concerning natural disasters. - read more |
| Government Consultancy Contracts Near $1 Billion Amid Outsourcing Reduction Efforts 13 Jan 2026: Paige Estritori Recent research indicates that the Australian federal government signed contracts worth nearly $1 billion with consultancy firms in the last financial year, marking a 48% increase from the previous year. This development comes despite the government's commitment to reduce reliance on external consultants. - read more |
| Construction Cost Surge and Labour Shortages Reshape Australian Insurance Claims 13 Jan 2026: Paige Estritori The Australian insurance industry is currently navigating a challenging landscape shaped by escalating construction costs and persistent labour shortages. These factors are significantly influencing the nature and volume of insurance claims, particularly within the construction sector. - read more |
| NSW Court Decision Heightens Builders' Liability for Defects 13 Jan 2026: Paige Estritori In a landmark decision, the New South Wales Court of Appeal has significantly altered the landscape of construction liability, particularly concerning builders' responsibilities for defects. The case, known as Pafburn, has removed the previously relied-upon proportionate liability defence, thereby increasing the accountability of builders and developers for construction defects. - read more |
| Customizing Your Farm Insurance: Tailoring Policies to Fit Unique Agricultural Needs Those who work the land know that every farm has its own heartbeat - its unique rhythm defined by the crops it yields, the livestock it nurtures, and the natural environment it exists within. Recognizing this individuality is crucial, especially when it comes to safeguarding your agricultural investment with the right insurance policy. - read more
|
| Securing Your Farm's Future: Top Estate Planning Tips for New Zealand Farmers New Zealand's farming community forms the backbone of its thriving agricultural sector, yet many overlook the critical importance of proactive estate planning. With farmland often being held within families for generations, securing its future is not just a financial concern, but a deeply personal one as well. - read more
|
| Protecting Your Farming Future: Why Machinery Breakdown Coverage is Essential Farming is a vital part of New Zealand's economy and cultural heritage, representing a way of life for thousands across the country. With its unique landscapes and diverse climate, New Zealand farmers are renowned for producing a wide array of high-quality products that serve not only the nation's needs but also supply a multitude of international markets. - read more
|
| Natural Disaster Preparedness: Insurance Tips for Farmers Facing Adversity In the heart of New Zealand's pastoral verdure, the significance of preparedness for natural disasters is paramount for the farming industry. The distinct landscape, while providing an idyllic backdrop for agricultural pursuits, is not without its challenges. Farmers are often at the mercy of nature's unpredictability, making disaster preparedness not just prudent but essential for the continuity of their livelihood. - read more
|
| Customized Insurance Solutions: The Advantage of Specialized Farm Brokers Farming in Australia is more than just a way of life; it is a critical sector that supports the nation’s economy and food supply. However, managing a farm comes with its own set of unique risks. From natural disasters to equipment failures, farmers face numerous challenges that can impact their livelihood. - read more
|
| How to Protect Your Farm Investments with the Right Insurance Plans If you are running a farm, you already know that it is more than just a business; it's a way of life. Your farm is a culmination of hard work, valuable resources, and significant financial investments. - read more
|
|
|
Natural Disaster Preparedness: Insurance Tips for Farmers Facing Adversity In the heart of New Zealand's pastoral verdure, the significance of preparedness for natural disasters is paramount for the farming industry. The distinct landscape, while providing an idyllic backdrop for agricultural pursuits, is not without its challenges. Farmers are often at the mercy of nature's unpredictability, making disaster preparedness not just prudent but essential for the continuity of their livelihood. - read more
|
|
|
Customizing Your Farm Insurance: Tailoring Policies to Fit Unique Agricultural Needs Those who work the land know that every farm has its own heartbeat - its unique rhythm defined by the crops it yields, the livestock it nurtures, and the natural environment it exists within. Recognizing this individuality is crucial, especially when it comes to safeguarding your agricultural investment with the right insurance policy. - read more
|
|
|
Protecting Your Farming Future: Why Machinery Breakdown Coverage is Essential Farming is a vital part of New Zealand's economy and cultural heritage, representing a way of life for thousands across the country. With its unique landscapes and diverse climate, New Zealand farmers are renowned for producing a wide array of high-quality products that serve not only the nation's needs but also supply a multitude of international markets. - read more
|