The outgoing head of New Zealand's Insurance Council has advised Kiwis to stop building in 'dumb' places.

Tim Grafton has spent 11 years in the role and overseen the pressure earthquakes, cyclones, floods and climate change are placing on infrastructure.

He says building houses in risky locations will put people in harm's way and make it harder for insurance to be readily available.

"All of those things combined, we should be thinking smarter about where we build- and not just consenting in dumb, stupid, unintelligent places."

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