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February 2026

New Zealand Insurance Market Update

Insurance outlook for New Zealand businesses.

Read the full update

Overview: improving insurance market conditions

Insurance market conditions may improve for some New Zealand businesses in 2026. A stable claims environment and favourable reinsurance results are helping insurers offer better pricing, stronger capacity, and more flexible cover across most major insurance classes.

For commercial organisations, this presents a timely opportunity to review insurance programmes, manage costs, and strengthen protection — while market conditions remain supportive.

What’s driving better conditions in the insurance market?

Reinsurance and global claims trends

Global reinsurance costs eased in early 2026. Rates declined by 12.5% to 20% globally, supported by strong capital levels and fewer major disaster losses than in recent years. This has strengthened insurers’ balance sheets and improved their appetite for risks.

What this means for businesses

Insurers are more willing to compete for good risks, helping keep premiums stable and, in many cases, lower.

More choice and competition

Insurance capacity continues to grow, with more local and international insurers competing for New Zealand business.

What this means for businesses

Increased competition is improving pricing, choice, and flexibility at renewal.

Property insurance: positive momentum continues 

Many businesses achieved premium savings on property insurance in 2025, and this trend is expected to continue into 2026, provided there are no major loss events.

Improved reinsurance support, stronger insurer performance, and heightened competition are helping maintain favourable pricing and coverage terms.

However, outcomes still depend on location, construction type, flood exposure, and maintenance standards.

Key takeaway: Well-maintained, accurately valued properties are best positioned to benefit from current market conditions.

New Zealand’s risk and regulatory environment

Several local developments are influencing long-term insurance outcomes:

Earthquake and building regulation reforms

Earthquake-prone building reforms are shifting to a more targeted, risk-based approach, easing compliance requirements for many property owners.

Fire and Emergency Levy changes

From July 2026, updated levy calculations and exemptions will apply, affecting insurance-related costs.

The National Adaptation Framework and climate risk

The government’s National Adaptation Framework is strengthening long-term climate resilience and risk information sharing.

Business impact

These changes aim to support more sustainable insurance outcomes but increase the importance of accurate property and risk data.

Insurance trends across key risk areas

Across most major insurance classes, conditions remain supportive, with insurers continuing to differentiate based on risk quality.

Liability and professional indemnity insurance

Generally stable pricing, with strong focus on governance, compliance, and claims history.

Cyber insurance

Premiums have stabilised, but insurers expect strong cybersecurity controls. Businesses without basic protections may struggle to obtain cover.

Directors’ and Officers’ insurance (D&O)

Competitive market for well-managed companies, with moderating rate reductions.

Motor fleet and mobile plant insurance

Highly competitive for businesses with strong safety and fleet management systems.

Marine cargo insurance

Market conditions remain positive, with good levels of insurer interest and competition. Many businesses are seeing stable or improved terms, particularly where goods are well packaged, securely transported, and supported by reliable logistics partners.

Construction insurance

Improving conditions for well-run projects, supported by growing overseas capacity.

Environmental liability insurance

The demand for environmental liability insurance continues to rise, as companies enhance ESG policies. Broadening risk appetite and increased competition in 2026 is expected to driver rate reductions.

Life, disability, and health insurance (people risks)

Mixed conditions, with ongoing pressure from mental health claims and medical inflation, balanced by insurer competition for strong schemes.

What this means for New Zealand businesses

Strong risk management continues to deliver the best insurance outcomes.

Better insurance renewal outcomes

Increased competition is helping many businesses secure:

  • More competitive premiums

  • Broader coverage

  • Fewer exclusions 

  • Greater policy flexibility.

A good time to review insurance programmes

Supportive conditions make this an ideal time to review:

  • Sums insured and valuations

  • Deductibles and excess levels

  • Policy limits and exclusions 

  • Cyber and liability protections.

Risk management remains critical

Even in a competitive market, insurers favour businesses that demonstrate:

  • Good maintenance and safety practices

  • Accurate valuations and asset data

  • Clear cyber and fraud controls 

  • Sound governance and planning.

NZ insurance market outlook

Provided major catastrophe activity remains within expected ranges, insurance market conditions are expected to remain stable through 2026, with strong capacity and constructive insurer engagement. 

While climate and economic risks remain, current fundamentals support a positive outlook for most New Zealand businesses. 

Access the full report
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Marsh Limited (NZBN 9429040918792)(“Marsh”) arranges the insurance and is not the insurer. This page contains general information and does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh on request. This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage.

LCPA 26/NZ029