Source: Insurance Council of NZ
The Insurance Council of New Zealand | Te Kāhui Inihui o Aotearoa (ICNZ) is urging the Government to provide stronger national direction to better manage natural hazards risks like flooding and landslips and avoid developments in high-risk areas.
The Government has recently consulted on a National Policy Statement (NPS) for Natural Hazards, aimed at improving how natural hazard risks are considered in land-use planning decisions.
“New Zealand faces significant natural hazard risks, including flooding, landslips, coastal inundation and sea level rise and these risks are intensifying with the science indicating the prospect of more frequent and severe climate related events,” ICNZ Chief Executive Kris Faafoi said.
“As Prime Minister Christopher Luxon acknowledged recently, we can’t keep building in dumb places that put Kiwis in harm’s way. By reducing the risk, we keep insurance accessible for our communities.
“We support the Government’s focus on strengthening the planning system to deal with natural hazards. A strong, clear national policy will empower councils to control development in areas exposed to high hazard risk.
“The draft NPS from the Ministry for the Environment is an important step forward and an improvement on the current approach.
“However, we believe it doesn’t go far enough. Many councils are already following the intent of the draft NPS in their natural hazard decisions. What’s needed now is a policy with real strength.
“We support strengthening the NPS to give councils greater confidence to stop development in high-risk areas. We believe the NPS in its current form creates more uncertainty which may increase the risk of councils having their decisions relitigated.
“ICNZ and its members have been engaging with councils and agree that clearer rules and stronger tools are needed to help them make better decisions to reduce risk and protect their communities. This will also support the future accessibility of insurance in these areas.
“The proposal also risks undermining national consistency by offering too much flexibility, which could dilute the effectiveness of the policy.
“We all know it makes sense to act before disaster strikes, rather than start over, particularly as New Zealand faces increasing risks from climate-related events.
“A clear and strong national direction will help lay the foundation for a more resilient future that protects communities, supports informed planning decisions, and ensures insurance remains accessible,” Kris Faafoi said.
You can read ICNZ’s submission on the NPS for Natural Hazards here.