The charge accounts for around 9% of premiums across levied classes, and the council warns it may push households to raise excesses and cut sums insured.
The initiative could redirect NZ$600-700m (US$360-420m) annually towards natural hazard risk reduction while shifting fire services funding to the Crown.
Review says 71% of New Zealanders expect natural disasters to worsen, while 65% accept premiums may rise as weather losses and rebuilding costs increase.
