The New Zealand Taxpayers’ Union submitted feedback on proposed changes to the Natural Hazards Insurance scheme, including a potential 50% levy increase and a higher cap on government-backed cover. While these changes are based on updated risk modelling, we raised concerns that the evidence provided is not yet sufficient to justify such significant cost increases for homeowners.
In our submission, we called for independent validation of the seismic risk model, questioned the assumptions behind the scheme’s self-sufficiency targets, and opposed linking levy decisions to the Government’s broader fiscal position. We also pushed for greater transparency and ongoing consultation to ensure decisions are properly scrutinised.
Higher levies directly impact the cost of living for homeowners. Without clear justification, there is a risk the scheme becomes a de facto tax rather than a fair insurance model, while also distorting the market and reducing competition from private insurers.
