Media Release

Building a climate-resilient future: Vero releases second Climate-Related Disclosures Report

23 October 2025

Vero Insurance, part of Suncorp New Zealand, today released its second Climate-Related Disclosures. The report highlights the insurance industry’s unique exposure to climate impacts and reinforces the urgent need for increased natural hazard resilience efforts and support for the recent National Adaptation Framework.

The report follows the official Aotearoa New Zealand Climate Standards (NZ CS 1-3) and demonstrates how Vero is addressing climate risks and opportunities, while working toward its own climate commitments.

"Our climate report highlights the impact of climate change on our communities and the insurance sector, reinforcing the urgent need for action," said Tom Hinds, Executive Officer, Suncorp.

"New Zealand’s ability to adapt is vital for everyone's success. This report details our progress in assessing climate risks and shares our plans to help build a more resilient future."

The insurance industry’s unique exposure

Vero's Climate Change Scenario Analysis (CSA) indicates that without significant mitigation efforts, climate-related physical risks, including floods, storms, and coastal inundation are projected to increase significantly by 2050.

The analysis indicates that the financial losses from extreme weather events, measured as Average Annual Loss (AAL) is projected to increase by 19-26% by 2050. The main drivers of this increase are accelerating sea-level rise, leading to more frequent coastal inundation, and more intense surface water flooding, particularly impacting the South Island.

Disproportionate impacts and affordability challenges

Climate change won’t affect all properties equally. The report found that a small number of properties carry a disproportionate amount of risk. Less than 1.5% of present-day insured coastal properties face all projected coastal inundation losses, while less than 2% of inland properties account for 30% of the projected flood-related losses.

“If left unaddressed, the rising risks will lead to increased costs for all insurers, including higher claims and reinsurance, which in turn may affect the cost and availability of insurance cover" says Hinds.

“Adaptation measures like improved hazard mitigation and increased investment in resilience will be essential strategies to help reduce the risk to these communities,” he adds.

Advocating for adaptation

Vero is taking proactive steps to manage its exposure and advocate for resilience at a national level. This includes investing significantly in core insurance capabilities, such as advanced flood models, new underwriting practices, and more granular risk pricing to better understand and manage complex climate risks.

Vero supports the government's new National Adaptation Framework and will continue to work alongside government, local councils, and the financial services sector to accelerate the implementation of resilient infrastructure investment and other climate adaptation priorities outlined in the Cabinet Paper.

“Our commitment is twofold. First, to ensure the resilience of our business so we can continue to be there for our customers when they need us most. Second, to advocate for the investment and action needed to build a more climate-resilient and safer Aotearoa New Zealand for all Kiwis,” says Hinds. 

Read the full report here.