Iconic Wellington attractions feeling the pinch as insurance costs soar

The cost of insurance is soaring, and it's causing concerns for some major attractions in the capital.  

Premiums for Wellington's cable car have jumped 160 percent, while Sky Stadium has cut back its cover to keep out of the red. 

The view from Wellington's iconic cable car is one of the best, but the car's CEO Cesar Piotto says the view of its financial future is looking tight.

"Look it's difficult, it's difficult doing business, especially with the rising cost of doing business is coming at us from every angle."

Over the past four years, the cost of the Wellington cable car's insurance has risen a whopping 160 percent. 

"Ever since Kaikoura, it's been increasing and it continues to, and we have every indication it's going up again this year."

The rising insurance costs, a real struggle off the back of two very difficult years - and it's not the only Wellington icon feeling the pinch. 

In papers released ahead of a city council committee meeting on Thursday, Sky Stadium officials say premiums have become "increasingly unaffordable" and they've had to cut back cover. 

So if the stadium ever needed replacing, they would be $100 million short. Insurance Council NZ CEO Tim Grafton said it's not just an issue isolated to Aotearoa. 

"We're seeing rising costs all over the world from inflation, so insurance is no different from that."

Grafton added the hikes also reflect a better understanding of earthquakes and the risks of climate change. 

But Wellington City Councillor Diane Calvert says going forward is not really sustainable. 

"It's council working with local businesses, with residents and the Government and asking is Wellington getting a fair deal."