Consumer New Zealand says property owners may be priced out of home cover in the next decade after premiums increased by 916% over the past 25 years.

The group’s research shows 17% of people without cover cite cost as the reason.

Investigative team leader Rebecca Styles, who wrote a report on the study, says it is “entirely possible that many New Zealanders won’t be able to get insurance at all by 2035.

“Our research shows people are dropping cover or being priced out entirely, and this will only get worse without serious intervention.”

The report says 40% of customers do not trust insurance companies. Among key concerns are lack of transparency in risk-based pricing, limited ability to shop around, and perceptions that New Zealanders pay more than Australians for policies underwritten by the same insurers.

Consumer NZ wants more transparency on how risk affects pricing, regulators to investigate whether risk-based cover is applied fairly and “a market study into competition and consumer choice in the house insurance sector”.

It wants the government to deliver a climate adaptation framework for home insurance that identifies at-risk properties and details mitigation options for customers.

Consumer NZ’s research shows 72% of respondents back “a plan to help communities adapt to climate change”. Many call for this to be jointly funded by governments, insurers, local councils and homeowners.

The report calls for insurers to reward policyholders who undertake mitigation work and more funding for the Natural Hazards Commission to meet the challenges of climate change.

“If insurance becomes a luxury only available to a privileged few, the impacts on communities, our economy and society will be severe,” Ms Styles said. “We need a plan, and we need to start implementing that plan now.”

The Insurance Council of New Zealand acknowledges “some differences with Consumer NZ over the report’s findings” but backs “the need for government action. Like Consumer NZ, we support government leadership on climate adaptation and standardised risk data to avoid building in high-risk areas and invest in resilient infrastructure like flood protection.”

See the report here.