Published: 18 June 2024

Top insurance market trends to watch out for in 2024

Cyber-attacks: Cyber criminals are using increasingly sophisticated methods and emerging technologies (like artificial intelligence) to access critical assets for financial gain. Businesses and individuals should be aware of how disruptive technologies may impact or target them and their activities. It’s essential to stay on top of any cyber security risks, especially as the impacts of cybercrime can be financially devastating.

Economic slowdown: High interest rates, inflation and political instability are all contributing to economic slowdown in New Zealand. For example, annual inflation in New Zealand remained high at 4% in the 12 months prior to the first quarter of 2024, according to Stats New Zealand. *

Increased frequency of extreme weather events: We are witnessing an increase in the frequency of natural catastrophes fuelling upward pressure on insurance pricing. Locally, the Auckland Anniversary floods and Cyclone Gabrielle are expected to cost the insurance industry NZ$3.75 billion, according to the Insurance Council of New Zealand**. As a result of these increased costs, insurers have been making changes to insurance terms including premium increases which are impacting both home and business owners.

Start renewal discussions early: Insurers are seeing their resources being stretched, which is causing delay in securing terms and limiting remarket options. Accordingly, we urge conservatism when budgeting for annual policy renewals.
Secure an up to date sum insured for your building (both residential and commercial): The sum insured should be set at what it would cost to rebuild your property at current prices for building materials and labour and it’s important not to overlook demolition costs. Insurance valuations are vital to ensure that your property assets are adequately insured in case of unexpected loss or damage.
Consider policy structure options: Your broker may discuss a change to an excess, a change of limit, a review of your scope of cover or alternative market solutions.
Risk management: Review your risk management practices and the risk mitigation applicable to your individual business activities. Reducing the risk can be as effective as insuring against a loss.
Take a “best foot forward” approach: Ensure your broker is provided with all of the information required to deliver a detailed and quality submission representing your business to market. Insurers will fill gaps in knowledge with price.
Budget planning: Budget for continued premium increases across most portfolios in 2024. Where accounts have had significant losses or are in flood and earthquake-prone regions, expect further price increases.

Talk to your broker about the right insurance cover for you.