ICNZ pushes for tougher natural hazard safeguards in Fast-Track Bill

ICNZ pushes for tougher natural hazard safeguards in Fast-Track Bill | Insurance Business New Zealand

Catastrophe & Flood

ICNZ pushes for tougher natural hazard safeguards in Fast-Track Bill

Natural hazards’ impacts on insurance and communities highlighted

Catastrophe & Flood

By
Roxanne Libatique

The Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ) is advocating for enhancements to the Fast-Track Approvals Bill.

It emphasised the need for development projects to incorporate safeguards against natural hazard risks like flooding.

ICNZ’s suggestions to enhance the Fast-Track Approvals Bill

ICNZ chief executive Kris Faafoi recognised the bill’s goal of speeding up infrastructure and development projects.

“We acknowledge the purpose of the Fast-Tack Approvals Bill to deliver faster infrastructure and development projects. We especially support the establishment of a fast-track pathway for projects that bolster adaptation, resilience, and recovery from natural hazards,” he said.

However, he emphasised the importance of avoiding exacerbating risks to communities.

“The Auckland Anniversary Weekend and Cyclone Gabrielle weather events in 2023 has resulted in over 115,000 claims at an estimated cost of $3.8 billion. These events highlight the need for a stronger focus on land use and development that emphasises climate change adaptation and resilience,” he said. “New Zealand needs to take a long-term perspective that fosters the broad availability of insurance. This entails prudent land-use planning that avoids new developments in high-risk areas susceptible to natural hazards.”

Impact of natural hazard risks on insurance

Faafoi cautioned that if the risk becomes too high, insurance may become unaffordable or unavailable.

“Where the risk becomes too high, insurance may not be affordable or available which has an impact on property values and the housing market and puts pressure on the government to invest in protection or compensate owners,” he said.

“ICNZ is committed to working with all those involved to find a way through the complex landscape of risk management and sustainable development. By prioritising and embedding resilience in decision-making processes, New Zealand can mitigate the adverse impacts of natural hazards and safeguard the wellbeing of its communities,” Faafoi said.