Insurer resumes cover in Canterbury towns after mayors step in

Thursday, 23 April 2026

AA Insurance has backtracked on a decision to stop offering new insurance policies in some Canterbury towns, following mayoral intervention.

Waimakariri Mayor Dan Gordon and Selwyn Mayor Lydia Gliddon recently met with AA Insurance representatives to seek clarity on the issue, with the insurer confirming it will lift its pause on new cover in Canterbury towns including Woodend, Lincoln and Rolleston.

''When AA temporarily removed cover in February, this caused confusion and distress for many residents,'' Gordon said.

''I quickly sought a meeting with AA to get clarity, more information, and formally asked the insurer to review this decision and come back to us.''

AA Insurance said in February it had stopped offering new home insurance policies in Woodend, after it halted offering new policies in two other Canterbury postcodes (Lincoln 7608 and Rolleston 7615) in September.

At the time, AA Insurance head of underwriting Dee Naidu the temporary restrictions were due to the company reaching its ''maximum level of exposure to seismic risk''.

Gordon said the meeting was productive.

''By convening mayors and insurers, we can cut through confusion, provide clear information and reassurance to homeowners, and in the longer run have delivered a practical outcome, with AA Insurance now lifting the temporary pause on new cover.

''This is a clear win for locals and restores confidence and choice.''

Naidu said AA Insurance recently reviewed its exposure and underwriting capacity.

'The temporary pauses we had in place for new homeowner and landlord cover across the Canterbury region have now been lifted.

'As we shared earlier in the year, from time to time we may place a temporary pause on new home and landlord policies in specific locations where we already have a high proportion of customers.

'These pauses on new cover are not permanent. As conditions change, such as our overall exposure and capacity, our settings can also change.'

The Woodend, Ravenswood and Pegasus urban area is one of the fastest growing in the country, so Gordon said access to insurance was critical for the wellbeing and confidence of communities.

''Insurance availability underpins people's ability to build, buy and invest in their homes and communities.

''My focus has been making sure residents are heard and that decisions affecting our communities are properly explained and reviewed.''