The Insurance Council is backing calls for Kiwis to lift their understanding of the risks of natural hazards.

The Reserve Bank has released an excerpt on insurance in its upcoming Financial Stability Report.

It says insurers, Government, home buyers and lenders all need to up their knowledge, so that future insurance affordability challenges, can be better managed.

Insurance Council chief executive Kris Faafoi says it's likely more places will become harder to insure as more risks are identified.

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