The Insurance Council of Australia (ICA) and the Insurance Council of New Zealand (ICNZ) have signed a Memorandum of Understanding to establish a formal partnership, known as the Resilient Insurance Markets Initiative, to coordinate advocacy, share expertise and build more resilient regional communities.
The agreement formalizes the informal trans-Tasman relationship into structured bilateral commitments at a time when both countries face complex and rising risks.
The authorities explained that climate fluctuations, cyber threats, geopolitical instability, supply chain disruptions, and the rapid development of artificial intelligence are reshaping the risk environment in the region.
Under the new initiative, ICA and ICNZ will focus on three priorities, including sharing insights on public and private risk reduction measures, coordinating advocacy to accelerate community resilience outcomes, and supporting coherence of regulatory frameworks across jurisdictions to improve productivity and consumer outcomes.
The initiative will be supported by regular bilateral engagement between the two organizations, relevant joint policy coordination and ongoing knowledge sharing.
“Insurance is one of the most effective mechanisms for societies to absorb shocks, restore economic activity after disasters, and price risks in a way that drives better decision-making. This partnership ensures that the two countries’ top institutions work together, rather than in parallel, when driving reforms,” a joint statement said.
Insurance Council of Australia chief executive Andrew Hall commented: “The disasters hitting our region are not slowing down and the pressure on families and businesses is only growing.
“Extreme weather is no longer just a community issue but a financial issue, with Australian and New Zealand governments facing the same increasing costs to their budgets, infrastructure and economies.
“This partnership means our two industries are now formally aligned to drive policy and investment solutions together to reduce risk, protect communities and keep insurance working for those who need it most.”
Insurance Council of New Zealand chief executive Kris Faafoi said: “New Zealand is a country on the frontline of rising disaster risks and investment in resilience has never been more important.
“Every dollar invested before a disaster strikes can result in a return of $5 to $8 in avoided losses. Our countries can work together across the Tasman to share insights, coordinate advocacy, and better target and elevate these investments to build a more resilient region.
