The regulator pointed to higher claims costs, tighter reinsurance appetite and pressure on trade-exposed lines as external volatility feeds into the sector.
The initiative could redirect NZ$600-700m (US$360-420m) annually towards natural hazard risk reduction while shifting fire services funding to the Crown.
Proposed amendments would enable the complaints body to hear disputes arising from Australia's new ban on the use of adverse genetic test results in life insurance underwriting.
