Health and life insurers out of climate reporting
Health and life insurers will not face enforcement action if they fail to lodge climate statements while legislation removing them from New Zealand’s climate reporting regime makes its way through Parliament.
Thursday, June 18th 2026, 12:13PM
Picture: Kirk Hope, FSC CEO
The Financial Markets Authority has confirmed it will take a “no action” approach from June 19 for affected insurers with upcoming lodgement dates for the 2025/26 reporting period, following the Government’s decision to remove health and life insurers from the climate-related disclosures regime.
The Financial Services Council welcomed the move, saying the previous requirements imposed significant costs without delivering clear benefits to customers.
FSC chief executive Kirk Hope said the Government deserved credit for listening to industry concerns.
“Health and life insurers do not insure homes, farms or roads against floods and storms. They protect people when they get sick, can’t work or when their family needs support,” Hope said.
“The previous regulations treated very different risks as if they were the same. That added compliance cost of $10-15 million a year without clear value for New Zealanders.”
Under the FMA’s approach, life and health insurers with balance dates from 31 March 2026 onwards will not be expected to lodge climate statements.
Firms will not need to apply for relief or notify the regulator that they are relying on it.
FMA general counsel Liam Mason said the regulator recognised many insurers faced uncertainty while waiting for the legislative changes to be enacted.
“We recognise that many life and health insurers will be impacted by the uncertain timeframe in which the amending legislation might be passed,” Mason said.
“This will mean that they do not know whether they will be required to lodge climate statements. This approach will avoid unnecessary compliance costs and promote the development of fair, efficient and transparent financial markets.”
Hope said the timing of the change was important as insurers faced pressure on premiums and consumers remained focused on household costs.
“This is a welcome relief at a time when health and life insurers are facing real pressure on premiums and Kiwis are watching every dollar. Removing unnecessary cost from the system is the right thing to do.”
He said climate risk remained important and insurers would continue managing it through governance and prudential oversight, but mandatory investor-style climate reporting was not the right tool for health and life insurers.
The FMA said it would continue monitoring the progress of the legislation and would review its position if the law changes had not been passed before insurers began preparing statements for the 2026/27 reporting period.
The regulator also noted that some insurers may choose to continue producing climate-related disclosures voluntarily. Any voluntary reporting would remain subject to the fair dealing provisions of the Financial Markets Conduct Act.
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