New Zealanders are sounding the alarm over skyrocketing insurance costs, with new data showing it has become one of the country’s most pressing financial burdens.
Consumer NZ’s latest Sentiment Tracker reveals insurance is now the fourth biggest financial pressure for households, behind housing, food, and debt — up from sixth place in October 2024. The rapid rise reflects widespread frustration as premiums for house, contents, car, and health cover continue to climb.
At the same time, public trust in the insurance industry is collapsing. More New Zealanders now say they distrust insurers than trust them, a reversal from previous trends.
“Insurance is meant to be a safety net, but for many it’s becoming unaffordable and inaccessible,” said Consumer NZ investigations team leader Rebecca Styles. “When you combine complex policies with a lack of transparency, it’s no surprise trust is plummeting.”
Consumer’s upcoming report on house and contents insurance will explore how rising costs are locking people out of essential protection, particularly as climate change increases the risk of weather-related disasters.
Consumer NZ investigations team leader Rebecca Styles
“We’re hearing from more and more people who feel they’re being priced out of basic cover,” Styles said.
The latest data also shows climate change has fallen down the list of top national concerns, with just 12 percent of respondents citing it as a key issue — down from 17 percent a year ago — as financial stress takes priority.
With 65 percent of respondents identifying the cost of living as their number one concern, the pressure on household budgets is intensifying.
Styles said the insurance industry must urgently rebuild public trust by demonstrating value and fairness.
“New Zealanders need clarity, not confusion. Insurance should protect people — not push them closer to the edge.”
