Source: Insurance Council of NZ
The Insurance Council of New Zealand | Te Kāhui Inihua o Aotearoa (ICNZ) has welcomed the Government’s National Adaptation Framework as an important and necessary first step towards building New Zealand’s climate resilience and keeping insurance accessible.
ICNZ Chief Executive Kris Faafoi said the framework provides much-needed direction on how government, councils, the private sector and communities will work together to reduce and manage climate-related risks.
“The Government’s focus on clear roles and responsibilities, better information on natural hazard risks, and investment in risk reduction are all steps in the right direction,” he said.
“We’ve seen how damaging and costly severe weather events can be like the North Island weather events in early 2023. The sooner New Zealand moves from talking about adaptation to acting on it, the better protected our communities will be.”
“We all know it’s better to act before disaster strikes, rather than pick up the pieces later with ICNZ research showing nearly 9 out of 10 respondents agreeing it’s better to take action beforehand. By reducing risk from the social and economic shocks of flooding, landslips, and sea level rise, we keep insurance accessible and available across our communities.
Under the framework, councils will be required to develop 30-year adaptation plans for priority locations facing flood and coastal hazards, setting out actions, costs, and funding mechanisms.
Kris Faafoi said these measures will help communities plan ahead but emphasised the urgency of putting in place the rules and tools that councils need to deliver them.
“Adaptation needs to be accelerated. Some vulnerable communities are already facing repeated losses and they can’t afford to wait five years for plans and longer still for adaptation projects to get underway.
“We need to see the rules, funding arrangements, and cost-sharing mechanisms finalised as soon as possible.”
Kris Faafoi also highlighted the importance of cross-party political support to ensure long-term continuity of adaptation policy.
“The challenges of climate change won’t wait for electoral cycles. What’s needed now is enduring broad-based political support so that adaptation work continues with certainty, no matter who is in government,” he said
“There is still a lot to be done.
“Decisions to further invest in resilient infrastructure will help reduce the risk to lives, property and communities. It makes economic sense too. Research shows every $1 invested in flood risk reduction can save up to $4 in future response and recovery costs.
“Insurers are committed to working with the Government, councils, and other groups as the framework is developed and implemented.
“Our goal is a New Zealand where communities are protected, risks are reduced, and insurance remains accessible. The framework is a good start. However, the real test will be in how quickly we can translate policy into action.,” Kris Faafoi said.
