The Insurance Council of Australia (ICA) and the Insurance Council of New Zealand (ICNZ) have signed a memorandum of understanding establishing the Resilient Insurance Markets Initiative, a formal partnership aimed at strengthening insurance market resilience as disaster-related losses continue to increase across both countries.
The initiative formalises what the organisations described as a longstanding informal relationship and creates a structured framework for collaboration on risk reduction, policy advocacy and regulatory matters.
Under the agreement, the two industry bodies will focus on sharing insights into public-private risk-reduction measures, coordinating advocacy to improve community resilience outcomes, and supporting regulatory alignment where it benefits productivity and consumer outcomes.
The initiative will be supported through regular bilateral engagement, joint policy coordination and ongoing knowledge sharing between the organisations.
The announcement comes as both nations face mounting challenges from climate volatility, cyber threats, geopolitical instability, supply chain disruption and the rapid development of artificial intelligence, all of which are reshaping risk exposures for households, businesses and governments.
According to the two councils, Australia and New Zealand experience some of the highest per-capita natural disaster losses globally, with costs continuing to rise.
“The disasters battering our region are not slowing down, and the pressure on households and businesses is only growing,” said Andrew Hall, chief executive officer of the ICA.
“Extreme weather is no longer just a community issue, it is a fiscal one, and governments across Australia and New Zealand are confronting the same mounting costs to their budgets, their infrastructure, and their economies.”
Hall said the partnership would enable the two industries to align their efforts in advocating for policy reforms and investments that reduce risk and support sustainable insurance markets.
ICNZ chief executive officer Kris Faafoi said greater investment in resilience would be critical as disaster risks increase.
“New Zealand is a nation on the front line of rising disaster risk and investment in resilience has never been more critical,” he said.
“Every dollar invested before a disaster can return NZ$5 (US$2.93) to NZ$8 in avoided losses.”
Faafoi added that the partnership would allow both countries to share insights, coordinate advocacy efforts and better target investments aimed at building more resilient communities across the region.
