New Zealand’s NHC secures $10.3bn of reinsurance protection at June 1

Natural Hazards Commission Toka Tū Ake (NHC) has secured $10.3 billion of reinsurance protection for New Zealand at 1 June 2025 to help protect homeowners from the impact of natural hazards.

The $10.3 billion figure marks an increase of $1.15 billion from June 2024’s total reinsurance cover.

It also includes $225 million from a multi-year catastrophe bond placed in 2023. You can read more on this Totara Re Pte. Ltd. (Series 2023-1) catastrophe bond, and all others, in the Deal Directory of our sister publication, Artemis.

NHC Chief Executive Tina Mitchell commented, “All insured homeowners across New Zealand contribute levies to the scheme.

“We use a proportion of those levies to purchase reinsurance cover at a national level. If a significant natural disaster should happen and costs exceed $2.2 billion, the scheme can then access up to an additional $10.3 billion for settling homeowners’ claims.

“The scheme is held in very high regard globally. Our long-term investment in research and modelling means we can give reinsurers a transparent understanding of the risks they are insuring. We are pleased to secure this level of reinsurance for New Zealand.”

Mitchell continued, “International markets also value the scheme’s commitment to community resilience. By funding science and research, then translating that into insights that can be used by decision-makers, we are supporting better building standards, decisions on where new homes are built and government planning.”

“We can’t change the natural hazards we live with, but we can be prepared. Ensuring we have access to the right financial support provides peace of mind for New Zealand homeowners.”

Previously known as the Earthquake Commission (EQC), NHC underwent significant changes in 2023 when the government passed new legislation, the Natural Hazards Insurance Act 2023. This Act came into force on 1 July 2024.

The new legislation replaces the Earthquake Commission Act 1993, modernising the framework in light of lessons learned from major events such as the Canterbury and Kaikōura earthquakes, as well as findings from the 2020 Public Inquiry into the Earthquake Commission.

Importantly, the Act also introduced a new name, reflecting the broader scope of the organisation. Now known as NHC, it provides insurance and expertise for a wider range of natural hazards, not just earthquakes.

As part of this transition, some product names have changed to better align with the updated focus. The EQCover insurance product is now called NHCover, and the Natural Disaster Fund has been renamed the Natural Hazard Fund.

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