Published: 8 April 2025
Top insurance trends to look out for in 2025
Pricing projections in the local insurance market appear to be becoming more favourable; however, businesses should be conscious of their underlying risk and not chase premium savings at the expense of adequate cover. Below, we outline the most important insurance trends to watch in the coming year.
We are not only seeing increased capital availability from our network of insurers, but also new entrants from London, Europe, and Asia, bringing additional capacity to the New Zealand market. This means that, on average, more capacity is available; however, in high hazard risk areas, we are seeing no significant increase in capacity.
After years of sharp increases, commercial insurance premiums are stabilising and for certain classes of insurance we are seeing marginally lower rates. We expect this "softening" trend to continue through 2025, leading to a further reduction in insurance costs. However, it's important to keep in mind that future weather-related events could disrupt this progress.
The storms in New Zealand in 2023, along with recent overseas events like Australia’s cyclone and the wildfires in Los Angeles, are prompting insurers to reassess their risk exposure, especially in regions vulnerable to natural hazards. Additionally, many insurers are now determining pricing based on the property’s location, meaning businesses in natural hazard zones - such as near a fault line, in a flood zone, or on unstable land – may experience higher insurance premiums.
As businesses increasingly digitise their operations, cyber threats are becoming a more significant concern. The rise of Artificial Intelligence is further empowering cyber attackers, making cyber warfare more accessible than ever. As a result, businesses are recognising cybersecurity as a critical threat and are actively seeking specialised coverage to protect against potential financial losses.
With the market changing, it’s a great time to chat with your broker, who can offer advice that’s tailored to your unique situation.
Any questions? Get in touch with your Rothbury broker.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal, financial, or professional advice. For specific advice tailored to your situation, please consult with a qualified professional.