The Insurance Council's highlighting the tough balancing act facing the Government, over the Natural Hazard Commission insurance fund shortfall.
The Government is signalling a home insurance levy increase to help bolster the Commission's kitty.
Cabinet is set to decide on the changes in the coming months.
Insurance Council Chief Executive Kris Faafoi told Mike Hosking it's a tricky task when money is tight.
Faafoi says funds are necessary, as the commission provides the first payout, but increases will be tough given the current cost of living.
Levies could increase between $200 and $300 a year.
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The Mike Hosking Breakfast