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New Zealand Recorded Minimal Insured Losses From Natural Disasters in 2024

While global natural disasters have cost insurers billions in 2024, New Zealand stayed relatively safe last year. According to Aon’s latest Climate and Catastrophe Insights report, 2024 was the sixth-costliest year for insurers globally, reaching $368 billion in payouts. This was, in part, driven by Hurricanes Milton and Helene, severe convective storms in the U.S., and flooding across Europe. However, New Zealand has dodged any significant natural disaster, providing relief for many...

Construction Recovery Is Likely in June, Economists Say

In another series of good news for construction companies, top New Zealand economists say that industry recovery is likely in the second half of 2025. ASB economists state that the construction sector will likely remain subdued until June.   “Restrictive financial conditions and elevated building costs have weighed on home-building activity by both occupiers and developers in recent history,” said the ASB economists. “Our view remains that the overall&nbs...

Chris Penk: Making Things Easier for Small Businesses in New Zealand

The recent Cabinet reshuffle has indicated the government’s urgent priority on economic growth. This is unsurprising, as New Zealand’s economy has taken the biggest hit in the world in 2024 according to HSBC. Small businesses are a critical part of the economy, making up 25% of New Zealand's GDP and 28% of employment. As the Minister for Small Business and Manufacturing, Chris Penk sat down with NZBusiness Editor David Nothling-Demmer to discuss SME’s key...

Looking Forward: New Opportunities in New Zealand’s Infrastructure

After a tumultuous period in the past few years, New Zealand’s infrastructure sector can now look forward to new agencies, tools, and mechanisms to help them navigate the months ahead. A report by law firm Bell Gully, titled The Big Picture: Infrastructure – changing tides and new opportunities, discusses how key initiatives have been implemented to deliver much needed infrastructure to the nation. Here are the key points to note....

A Turning Point: Westpac Forecasts 2.5% Economic Growth in 2025

After a rough 2024, the New Zealand economy is setting a course for recovery this year, according to the chief economist at Westpac NZ, Kelly Eckhold.Westpac New Zealand’s latest economic outlook report forecast 2025 to be a turning point for businesses and investors. The second half of the year will likely achieve a growth of 2.5%, followed by 3% in 2026. However, Eckhold notes that there will still be challenges ahead.“We are now turning the corner towards growth, and there are promising s...

Attracting Infrastructure Investment: Government Releases First Quarterly Action Plan for 2025

In a movement to boost the construction sector, the collation government has released its first quarterly action plan for 2025, focusing on growth, infrastructure, and rebuilding the economy.Prime Minister Christopher Luxon recently announced that the plan included outlines to reshape planning rules so "people can get stuff done in this country". It also included upgrading the nation’s visa settings and improving regulations for the agriculture sector.This plan follows a series of in...

Loosening KiwiSaver Rules and NZX Changes Gets Seal of Approval

Finance industry players welcome the government’s proposed changes to make it easier for KiwiSaver funds to invest in a broader range of private assets and to list on the NZ Stock Exchange. According to Commerce Minister Andrew Bayly, the government wants to loosen the rules so that KiwiSaver funds can be invested in private assets, housing and infrastructure projects. Bayly states that the initiative would provide much-needed capital for local companies as well as offer investment d...

Bonded NZ Releases Protect Project to Mitigate Contractor Defaults

In a strong start to the new year, Bonded NZ is proud to release yet another service that will help homeowners secure their construction projects – Protect Project. With the rising uncertainties and building costs, homeowners are facing significant risks to any home renovations. New Zealand’s construction industry is moving at a slow rate, and many homeowners have put their renovation plans on hold as they adopt a wait-and-see approach.  Those who are renovating their hom...

Bonded NZ Unwrapped: Our 2024 Year-In Review + Holiday Hours

2024 has been an exciting year for Bonded NZ and the insurance market in general. As insurance brokers, we’ve seen our clients manage multiple forces in the market this year that have impacted their business.Positive news like cash rate cuts and streamlined building consent promises better times ahead amidst the introduction of new taxes and minimum wage hikes. Throughout all this, we aim to be a consistent pillar for all our clients, providing them with tailored insur...

Removing Council Inspections: Government’s Plans to Streamline Building Consent

The coalition government is making plans to streamline the building consent process by allowing trade professionals to sign off on their work without needing council inspection. In a recent press statement in Auckland, Building and Construction Minister Chris Penk revealed that the government was looking to replace the existing council inspection process for certain projects with a self-certification scheme. This would allow the construction process to be sped up. The new scheme will b...

Win a Free Residential Property Valuation With Construction Cost Consultants

To celebrate our long-term partnership with Construction Cost Consultants (CCC), Bonded NZ and CCC are giving away a free residential valuation to a lucky client. This lucky draw aims to promote better, more accurate valuations in the industry, allowing property owners to rebuild with confidence. Read more on our partnership with CCC and how Bonded clients are eligible for the lucky draw....

Fast Track Bill: Government Unveils 149 New Projects to Fast Track

The government has released a list of 149 projects that will be able to apply for fast-tracked consent under the proposed Fast-track approvals process. The bill, originally introduced to parliament on March 7th, was said to provide a streamlined decision-making process to “facilitate the delivery of infrastructure and development projects with significant regional or national benefits.” This process would implement a one-stop shop consenting and permitting process. The li...

Cash Rate Cut: What’s Next for the Market?

In positive news for businesses and consumers, the Reserve Bank has cut the Official Cash Rate to 4.75%, down by 50 basis points. In a media release published earlier this month, the RBNZ committee agreed to the cut and rationalised that annual consumer price inflation is within the committee’s 1 to 3 per cent inflation target range. Additionally, it made note of the ‘subdued’ economic activity in New Zealand, citing the declining business investment, consumer spending,...

Insurance Market Still Highly Competitive, According to IAG and Suncorp

New Zealand’s two biggest insurers have claimed that there is enough competition in the country’s general insurance market - despite their market share dominance. IAG New Zealand and Suncorp New Zealand recently announced positive growth in their annual financial report. Combined, the two companies recorded a gross written premium (GWP) of around $7 billion in the year ending June 2024. GWP indicates the total amount customers pay for insurance coverage on policies. Suncorp and IAG...

Climate Risk Expert: National Flood Adaptation Platform Needed to Mitigate Costly Floods

According to a climate risk management firm, New Zealand needs a national flood adaptation platform to combat the rising costs and financial risks caused by floods. ClimSystems is a risk management firm specialising in climate impact assessment and adaptation. Its portfolio includes creating and developing software used to assess and adapt to climate change impacts. The company recently urged the government to include a flood adaptation platform in its new climate adaptation framework....

The Path to Improving Rural Connectivity

As we plan to phase out copper networks in the next decade, more planning is needed to improve rural network connectivity in New Zealand. According to Anna Mitchell, the executive general manager of Fibre Frontier at Chorus, rural access to the Internet remains a prevalent issue hampering their growth. The lack of long-term plans to improve the country’s rural connectivity infrastructure is pressing – particularly considering the phasing out of copper networks in the next decade. �...

Government Promises 3 Major Construction ‘Shakeup’ To Reduce Building Costs

The government has announced an incoming major ‘shakeup’ to New Zealand’s construction rules to reduce building costs.In a press statement, Construction Minister Chris Penk said that new legislation will be implemented to facilitate the use of overseas building products in the Kiwi market."Our government has a plan to rebuild the economy to help Kiwis get ahead, and part of that plan includes cutting red tape and building more housing and infrastructure," Penk said."This red tape entrenche...

Six Changes Businesses Should Note This Financial Year

April 1st officially marks the beginning of the financial year, and with it comes new and noteworthy government regulations. From minimum wages to interest deductibility, it's important that businesses are aware of these changes and how they affect their day-to-day operations. So, what can Kiwi businesses expect this financial year? We’ve identified six main considerations....

New Zealand’s House Construction Costs Start to Normalise

Kiwi builders and homebuyers are seeing a significant weaning in the growth rate of construction costs.    According to the latest data from CoreLogic's Cordell Construction Cost Index (CCCI), building cost inflation has slowed to its lowest level in eight years, recording a modest 0.5% increase in Q1 2024. It is less than half the long-term quarterly average of 1.1%, indicating a shift towards stabilisation after a period of high market volatility. The annual change in ...

Economy, Cyber Security, and Environmental Issues Cited as Top Risks for Businesses in 2024

Kiwi businesses must be prepared for an economic slowdown, cyber-security threats, and environmental issues this year. According to the New Zealand Risk Landscape Report by accounting firm BDO, there are three major global risk areas identified for businesses navigating the nation’s landscape this year. They include:Cyber attacks and computer crime,Economic slowdown or a slow recovery, andEnvironmental risk BDO claims that as geopolitical and economic events continue to imp...

New Zealanders Want Stronger Buildings Amid Earthquake Risk

The latest industry research has set a new standard for builders around New Zealand: Kiwis expect their buildings to do more than just provide life safety in an earthquake. Reports by the New Zealand Society for Earthquake Engineers (NZSEE) and the and The Earthquake Commission (EQC) Toka Tū Ake have seen an increase in respondents' expectations during seismic events. The report claims that Kiwis want to not only survive major earthquakes, but also be able to resume occupying and any activ...

New Zealand’s Building Costs Rise by 2.4%: Records Smallest Increase Since 2016New post

Low home demands caused by high interest rates and economic uncertainties have slowed the pace of house-building costs in New Zealand.Recent numbers by CoreLogic, a property information and analytics company, have reported a 2.4% annual increase in the nation’s construction costs – making it the smallest annual increase since the 12 months ending September 2016. Additionally, Q4 2023 recorded a 0.8% increase from the previous quarter....

New Zealand's Economy Expected to 'Bounce Back' Post-election: But Big Businesses Remain Struggling

Experts forecast that New Zealand's economy might see a post-election uplift, but it might mean little for big businesses struggling with cost-of-living effects. New Zealand is a nation affected by cost of living pressures this year, with many households cutting their spending on groceries and retail. This knock-on effect impacts many businesses as significant drops in retail spending have been recorded.   However, labour pressure costs are expected to eas...

Slow Growth Forecasted for New Zealand's Construction Market Due to Rising Costs of Labour, Materials, and Energy

The latest reports by ResearchAndMarkets.com have forecasted a slow growth for New Zealand's construction sector.  This forecast comes as a result of rising material, energy, and labour costs that have impacted the industry. Additionally, the continued tightening of monetary policy by the Reserve Bank of New Zealand (RBNZ) will continue to impede the industry's growth. The report expects New Zealand's construction industry to grow by 3.6% in real terms in 2023 before rec...

Unemployment Rate at 3.9%: What Does The Labour Market Trends Tell Us?

New unemployment figures show New Zealand’s unemployment rate rose up to 3.9% in the September 2023 quarter – reaching the highest level since the June 2021 quarter. In line with the consensus of bank economists, the unemployment rate rose 0.3% from 3.6% in the previous quarter. Meanwhile, the labour force participation rate decreased slightly to 72% from 72.4% in the previous quarter. But what do these trends mean for businesses and employees in the months ahead? ...