The Government has announced a major step to broaden access to building materials in New Zealand. Under new regulations, high-quality, overseas-certified products, such as those approved in Australia or the European Union, will now be able to bypass full local testing if they meet recognised international standards. MBIE has released guidance to support councils and industry in applying these rules consistently.

For the country, this move has the potential to transform supply chains. Builders and developers may gain faster access to a wider range of products, helping reduce lead times that have plagued projects in recent years. With increased competition and sourcing options, the cost of construction could ease, creating savings that ultimately benefit homeowners, businesses, and taxpayers.

For the insurance industry, the change presents both opportunities and risks. Broader sourcing of materials could reduce project costs and timelines, but it raises questions about long-term durability, warranties, and liability if a product fails. Insurers will need confidence that imported products meet performance standards and that certification is robust. This may lead to the development of new policy conditions or exclusions tied to overseas approvals, as well as stronger oversight of warranties provided by suppliers.

If carefully implemented, the reform could strike a balance between maintaining building quality and safety while unlocking the benefits of global sourcing. It represents a pragmatic shift to make construction more affordable and efficient for all New Zealanders.