Vero says climate change will keep driving up natural hazard claims in the years ahead. Photo / NZME
Vero says climate change will keep driving up natural hazard claims in the years ahead. Photo / NZME
Vero is warning a recent surge in weather-related claims will continue and climate change is projected to increase costs by up to 15% by 2040.
Weather-related claims cost the insurer $184.6 million in the year ending June 30, 2026. Vero’s net incurred costs were $97.3m above itsnatural hazard allowance for weather-related events for the June 2026 year.
That is a big jump from the $70.6m in claims over the previous 12 months, according to its 2026 climate statement.
In that year, net incurred costs were $8.4m below the allowance.
Vero is forecasting climate change will push up natural hazard claims by between 12% and 15% by 2040, and between 21% and 27% by 2050.
Tom Hinds, the executive officer of Vero’s parent, Suncorp, said the group was taking action to build resilience, but long-term protection needed a coordinated national approach.
“Our report clearly shows that addressing climate-related risks will be essential to managing the costs of claims, reinsurance, and maintaining affordable and accessible insurance cover in coming decades.”
Suncorp chief executive Jimmy Higgins took part in New Zealand’s first National Adaptation Framework as a member of the Ministry for the Environment’s Independent Research Group on Climate Adaptation.
Vero reported it had cut its absolute scope 1 and 2 emissions by 63.5% from its 2020 baseline. Since July last year, all of its operational electricity has come from renewable sources.
The 2026 financial year is also the first the insurer has reported on the emissions of its corporate bond investments, which make up 54% of its investment assets.
