New Zealand’s insurance and financial services are under rising pressure from repeated extreme weather events, while homes, businesses and essential infrastructure are increasingly exposed to climate hazards, a government report warns.

The report – Our Atmosphere and Climate 2026, published by Stats NZ and the environment ministry – uses data, indicators and scientific evidence to assist decision-making.

“New Zealand’s communities, infrastructure and industries have developed around a particular range of climate conditions,” chief science adviser Alison Collins said.

“As those conditions change, the report highlights the effects on ecosystems, infrastructure, services and the places people live, work and travel.”

National studies, together with increasing adaptation and resilience research, are giving a clearer understanding of where risks are emerging, who is most exposed and where there are opportunities to reduce future impacts, the report says.

Climate change disaster impacts will lead to homes in high-risk areas becoming uninsurable, with implications for mortgage lending and their market value.

“Those who wish to sell may have to do so at a considerable loss, reducing their options to purchase homes elsewhere,” the report says.

As coastal flooding becomes more frequent, about 10,000 properties in Auckland, Christchurch, Wellington and Dunedin may become increasingly difficult or expensive to insure as soon as 2035 and could be uninsurable by mid-century, research suggests.

More insurers are adopting risk-based pricing, and in 2024 a Reserve Bank of New Zealand report said about 20% of 120,000 properties highly exposed to flooding were already paying an average of $NZ250 ($201) more a year in premiums.

The new report notes there is limited understanding of the costs associated with climate impacts, recovery and adaptation to long-term environmental change in New Zealand, and information is fragmented.

“Improving understanding of future climate change requires more than filling individual knowledge gaps. It also requires an environmental information system capable of connecting evidence across disciplines, scales and sectors.”

See the report here.