Thirty years ago, few could have imagined the scale or regularity of the natural disasters we face today. Events like Cyclone Gabrielle and the Auckland Anniversary floods have brought the impacts of climate change directly to our communities, underscoring just how much we need to adapt.
For the insurance industry - and for brokers in particular - these events are a reminder that our role isn’t just to respond after a disaster. It’s also about helping clients understand the risks they face, and the steps they can take now to be better prepared for the future.
In July, the Independent Reference Group (IRG) on Climate Adaptation, which I was proud to be part of, released its report outlining how New Zealand can shift from reacting to natural disasters to proactively reducing risk. The report will help inform the Government’s National Adaptation Framework, expected to be released later this year. But what does it mean for you and your clients?
The value of better information
One of the most significant recommendations is to improve access to hazard and climate risk information. Right now, this is fragmented; - councils, government agencies, insurers, and infrastructure providers all hold parts of the picture, but it’s inconsistent and often difficult to access. This means people are making major decisions about where they live, what they build, and how they invest without fully understanding their exposure.
The IRG has proposed creating a national, publicly accessible hazard database. If implemented, this would give buyers, homeowners, and businesses clearer insight into their risks. Clients would increasingly come to you wanting to know what those risks might mean for their insurance, and what they could do in response. That’s a significant opportunity for brokers to provide clarity and direction. Translating complex risk information into practical steps – like factoring resilience into a property purchase - could become an essential part of the role.
Planning for the long term
Adaptation is not a quick fix. The IRG has recommended a 20-year transition period to give households, councils, and the financial sector time to adjust. For clients, this means they can plan, spreading the cost of improvements, making considered decisions about upgrades, and thinking ahead about the future of their property. But it also means there’s real value in starting those conversations now.
Looking ahead over the next decade or two will become part of responsible property ownership. Clients will need to ask: Where is my property most exposed? What changes could make it more resilient? How might those improvements affect my insurance options and costs?
As hazard information becomes more comprehensive, pricing will become more precise. Factors like location, elevation, and building design will have a greater influence on premiums and availability. These changes won’t happen overnight, but the direction is clear - the link between resilience and affordability will become stronger. Clients who invest in risk reduction measures will not only reduce the likelihood of damage, but may also help manage their insurance costs over time.
A role beyond placing cover
Resilience delivers benefits beyond affordability. Properties that can withstand a severe weather event tend to hold their value, recover faster, and experience less disruption. For business clients, that can mean keeping operations running and serving customers while others are still in recovery.
In this environment, brokers are more than intermediaries; you’re trusted guides. Your role will increasingly involve helping clients interpret new information, weigh their options, and take steps that protect what matters most to them. Sometimes that will involve large-scale improvements, like elevating a home or installing flood protection. Other times it will be smaller, regular maintenance that reduces the risk of damage - trimming trees, clearing gutters, repairing minor issues before they escalate.
Clients will also have questions and they’ll look to you for clear, informed answers. Will my premiums increase? How will I know if my property is at risk? What options do I have to make my home or business more resilient? The IRG’s recommendations give you a credible, independent source to draw on when providing those answers, and to demonstrate that the industry is taking a planned, long-term approach to keeping insurance accessible.
Starting the conversation now
Adaptation also benefits communities as a whole. Reducing risk means less disruption, faster recovery, and a lighter load on emergency services and recovery systems. It means property values are better protected and investment is less likely to be driven away by repeated losses. And it creates the conditions for insurance to remain sustainable over the long term.
The IRG’s message is clear: we need to change the way we plan, build, and protect our assets. If we act early, strengthen our homes, and make better decisions about where and how we build, we can maintain the accessibility and affordability of insurance.
That’s why it’s important to start talking with clients about adaptation now. Not in the aftermath of the next severe weather event, when options are limited and emotions are running high, but in calmer times when there’s space to plan. Every small step taken today improves a client’s position in the future.
Brokers have always been central to recovery. In the years ahead, you’ll also be central to preparation. By helping clients understand their risks, interpret the information that’s coming, and act on it in practical ways, you’ll be making a direct contribution to their resilience and to the resilience of the communities we all serve.
If we do this well, we can create a future where New Zealanders are better prepared, better protected, and better informed. The IRG report gives us the framework. It’s up to all of us to turn it into reality.
