Hawke's Bay's high earthquake risk means most people in the region will this year have to pay nearly $100 a year extra to insure family homes.

Just months after consumers were hit with a double-whammy increase in government-set levies, leading insurer IAG, which has the AMI and State Insurance brands, will on start charging Hawke's Bay residents, along with those in six other regions, higher premiums than areas in the rest of New Zealand.

"We know New Zealand has many natural hazards, including earthquakes and floods, with different risks in different regions.

"In the past, the price people pay for home insurance hasn't fully reflected these differences in risk. This is now changing," IAG spokesman Kevin Hughes said.

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He said the decision on where to raise or lower prices has been based on data from two years of home insurance payouts, with prices rising in areas where the most natural disaster-related claims were made.

"Over the past few years, we've seen how New Zealand's environmental risks have evolved, and we're taking these risks more into account."

The average increases and decreases in total premiums for AMI and State customers were inclusive of levies and taxes.

IAG said it was unable to break down the potential increases for different areas of Hawke's Bay in any detail.

Fellow insurer Tower Insurance introduced similar pricing methods earlier this year.

The increase from IAG comes on top of further home insurance price increases that came into effect at the end of last year. Those included a 40 per cent hike in the fire service levy to $127 plus GST a year on house and contents insurance and a 33 per cent lift in the maximum EQC levy to $276 including GST.

BrokerWeb Risk Services Hawke's Bay regional manager Bruce Lewis said most people in Hawke's Bay would now be paying more for dwellings insurance.

"Across the board with our domestic clients, with dwellings insurance, we are probably seeing an average increase, from our clients' previous year, of between $150 to $200 a property. In general, insurance companies are hurting."

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One global insurer last year exited the domestic insurance market after just 18 months.