Rising sea levels will have minimal impact on insurance premiums in the short term, according to the Insurance Council of New Zealand (ICNZ).

But it warns issues with affordability may develop over the next few decades if adaptation measures are not put in place.

Parliamentary Commissioner for the Environment Jan Wright raised concerns at a recent Finance and Expenditure Committee meeting, and new data from research institute GNS Science suggests parts of south Dunedin could be sinking.

But ICNZ CEO Tim Grafton told insuranceNEWS.com.au any significant impact on premiums is likely to be “some years in the future”.

“Some in the media have been trying to portray this as an immediate issue,” he said. “Climate change and sea level rise will occur. But when, and to what level, nobody knows.

“However, adaptation is needed now, so insurance can remain available and affordable to as many people as possible.”

Mr Grafton accepts there is likely to be increasing debate over insurers’ tendency to exclude damage caused by actions of the sea.

He says New Zealand differs from Australia in this regard, because the Earthquake Commission (EQC) provides some cover for landslip within eight metres of a residential building.

“This could apply if a property was not far from a cliff and some fell away,” he said.