New Zealand’s Natural Hazards Commission Toka Tū Ake (NHC) has secured a record NZ$12.3 billion in reinsurance protection for 2026, marking a 20% increase from the NZ$10.3 billion programme arranged last year and reinforcing the country’s financial resilience against major natural hazard events.
The expanded programme, which represents an additional NZ$2.1 billion in protection, is designed to provide substantial financial backing for homeowners in the event of earthquakes, storms, floods, and other large-scale natural disasters. According to the NHC, the cover was secured on a more cost-effective basis than in 2025, despite the increased level of protection.
The reinsurance programme includes NZ$225 million of protection from the multi-year catastrophe bond issued through Totara Re Pte. Ltd. (Series 2023-1), which remains in force until May 2027. The catastrophe bond forms part of a broader risk transfer strategy aimed at diversifying sources of capital and reducing reliance on traditional reinsurance markets.
The record placement highlights sustained international confidence in New Zealand’s natural hazards insurance framework, with global reinsurers continuing to support the country despite rising catastrophe exposures and increasing climate-related risks worldwide.
Tina Mitchell, Chief Executive Officer of NHC, described the outcome as a major positive for New Zealand homeowners and communities.
“Securing increased reinsurance cover means New Zealand is better placed to respond financially when a major natural hazard event occurs. It provides confidence that funding will be available to help pay claims and support recovery, while helping protect the Crown’s balance sheet,” Mitchell said.
International reinsurers have shown continued willingness to allocate capital to New Zealand, reflecting confidence in the country’s catastrophe modelling, scientific capabilities, and long-term investment in resilience measures.
“International reinsurers have choices about where they put their capital at risk. Their willingness to increase their support for NHC reflects the strength of our scheme, the quality of our natural hazard science and modelling, our ongoing investment in resilience and the transparency of our long-standing engagement with reinsurers,” Mitchell added.
The expanded programme comes at a time when governments and insurers globally are facing increasing pressure to manage catastrophe risk more effectively amid rising claims costs and climate uncertainty. For New Zealand, which is particularly exposed to earthquakes and severe weather events, maintaining robust reinsurance protection remains a cornerstone of financial preparedness.
Mitchell said the programme provides reassurance that adequate funding will be available to support communities when disasters strike.
“This continued support from global reinsurers is an important part of the financial protection available for New Zealanders. This programme provides peace of mind that New Zealand will have access to the funding needed to recover from major natural hazard events and support affected communities when they need it most,” she said.
The increase in cover also underscores the growing role of alternative capital solutions, including catastrophe bonds, in helping governments and insurers manage increasingly complex natural catastrophe risks while protecting public finances.
With catastrophe losses continuing to rise globally, New Zealand’s ability to secure record levels of reinsurance at improved cost efficiency may also position the country as a benchmark for public-private disaster financing and resilience planning.
