Willis said Cabinet had instructed regulators to work with insurers to analyse recent price movements and their effects on households. “We as a Cabinet have directed the Council of Financial Regulators, which is the Reserve Bank, the Commerce Commission, the Financial Markets Authority, along with government agencies, to work with the insurance sector to deep dive into those questions over the next six months,” Willis said. The review will examine the drivers of premium increases, how households are adjusting their cover, and which policy or regulatory settings may be influencing costs. It will include competition conditions, construction and repair cost trends, reinsurance pricing, and the sector’s move toward more granular, risk‑based pricing for events such as floods and earthquakes.
