For 2026, the Natural Hazards Commission Toka Tū Ake (NHC) has secured a record NZ$12.3 billion in reinsurance protection, which is a 20%, or $2.1 billion increase from last year’s NZ$10.3 billion programme.
The cover will provide substantial financial protection for New Zealand homeowners in the event of a major natural hazard disaster. The NHC stated that it secured the overall programme on a more cost-effective basis than last year.
The coverage includes $225 million from a multi-year catastrophe bond placed in 2023, which is in force until May 2027. You can read more about the Totara Re Pte. Ltd. (Series 2023-1) catastrophe bond, and others, in the Deal Directory of our sister publication, Artemis.
The record level of cover reflects the strong confidence international reinsurers have in New Zealand’s natural hazards insurance scheme.
Tina Mitchell, Chief Executive Officer, NHC, says the result is good news for New Zealand homeowners. She continued, “Securing increased reinsurance cover means New Zealand is better placed to respond financially when a major natural hazard event occurs. It provides confidence that funding will be available to help pay claims and support recovery, while helping protect the Crown’s balance sheet.”
Mitchell added, “International reinsurers have choices about where they put their capital at risk. Their willingness to increase their support for NHC reflects the strength of our scheme, the quality of our natural hazard science and modelling, our ongoing investment in resilience and the transparency of our long-standing engagement with reinsurers.”
She continued, “This continued support from global reinsurers is an important part of the financial protection available for New Zealanders. This programme provides peace of mind that New Zealand will have access to the funding needed to recover from major natural hazard events and support affected communities when they need it most.”
