The Insurance Council of New Zealand Te Kahui Inihua o Aotearoa (ICNZ) has welcomed the New Zealand government's commitment to introduce a legislation in parliament in 2025 on a climate adaptation framework. This would help prepare New Zealanders for the impact of climate change on lives, property and communities.
ICNZ chief executive Kris Faafoi said, “New Zealanders need certainty about the way natural hazard risks from climate change are going to be managed. Government leadership in this critical area is welcome.”
The government’s commitment is in response to the finance and expenditure select committee’s inquiry into climate adaptation released in October 2024.
ICNZ CE said, “The Government has acknowledged that a significant proportion of New Zealanders live in areas susceptible to increasing natural hazard risk and that the prospect of more frequent and severe weather events may impact the stability of our housing, finance and insurance markets.
A media release by ICNZ said, “The insurance industry is keen to continue to contribute to the policy formation to keep protecting communities and customers. As the Government has noted, an implementation plan will be required that all sectors can buy into and is achievable.
“New Zealand is a risky country and we are committed to finding solutions that reduce exposure to natural hazard risks by avoiding building in dumb places and by investing in infrastructure that protects communities as well as better preparing for recovery from future natural disasters.”
“We also support the government’s goal of a cross-party solution to ensure New Zealand’s approach is enduring. Adapting to climate change requires a long-term political commitment as reinsurers and insurers need long-term policy and investment certainty for some of the likely actions and investments required to safeguard Kiwis and minimise the insurance protection gap.”
ICNZ CE said, “While there is work already underway to prepare for a changing climate, we need to work with haste on this issue to keep all of New Zealand protected from the worst effects of future events.”=
Mr Faafoi said, “Research shows every dollar invested in adaptation brings substantial economic benefits. By addressing these risks now, New Zealand can avoid the higher costs associated with future climate-related disasters.”