ICNZ applauds Budget 2024’s boost for disaster preparedness

ICNZ applauds Budget 2024’s boost for disaster preparedness | Insurance Business New Zealand

Insurance News

ICNZ applauds Budget 2024’s boost for disaster preparedness

Industry head calls for proactive risk reduction

Insurance News

By
Roxanne Libatique

The Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ) has expressed approval for the additional funding announced in Budget 2024, which aims to enhance community resilience in the wake of recent natural disasters.

ICNZ chief executive Kris Faafoi highlighted the importance of this funding, particularly in light of the Auckland Anniversary Weekend flooding and Cyclone Gabrielle in early 2023.

“The extreme weather events in early 2023 was New Zealand’s second largest natural disaster and caused immense damage and disruption to lives, property, and infrastructure,” he said.

“We also welcome steps to build up the country’s knowledge of natural hazards by further funding for GeoNet and the National Seismic Hazard Model. It’s important that New Zealand takes a long-term view on the risks from natural hazards as we face the prospect of more frequent and severe events due to climate change,” Faafoi said.

Climate risk reduction needed to maintain insurance affordability

Faafoi stressed the need for proactive risk reduction to maintain insurance affordability and accessibility.

“Reducing risks to homes and communities before disasters strike is vital to helping keep insurance affordable and accessible in New Zealand. We urge the government to continue looking at ways to ensure New Zealand is building resilience in the future,” he said. “The ICNZ looks forward to working together with the government, councils, and others to find ways to reduce natural hazards risks to protect people’s lives and assets and build a more resilient New Zealand.”

The new bill aims to consolidate and modernise the legal framework for New Zealand’s insurance industry, improving market operations for insurers and policyholders alike.

The ICNZ plans to work closely with governmental and regulatory bodies to ensure that the bill and future regulatory changes benefit both consumers and the broader industry.