In New Zealand keeping insurance accessible is a key consideration as the government reviews the Natural Hazards Commission (NHC) levy amid ongoing cost-of-living pressures for Kiwis.
A media release by the Insurance Council of New Zealand Te Kahui Inihua o Aotearoa (ICNZ) said, “A survey commissioned by ICNZ found New Zealanders are torn on paying more to ensure the NHC is properly funded to provide basic cover for natural disasters like earthquakes, landslides and flooding.”
The survey shows 50% of the respondents are not prepared to pay NZ$200 ($119.25) more a year to better fund the NHC. Some 30% are willing to pay more, while 21% are unsure.
ICNZ Chief Executive Kris Faafoi said, “We know it’s a difficult time for families, with the cost-of-living foremost in Kiwis’ minds as they manage their budgets. The Government should make a decision to keep insurance accessible. Taxes and levies already account for around 40% of a home premium.
Mr Faafoi said, “Balancing affordability with the sustainability of the NHC Scheme is a shared challenge. The Government, NHC and insurers all have a role to play in keeping premiums manageable.”
The survey also found 59% of respondents are aware that part of their insurance premium is a levy that supports the NHC.
Mr Faafoi said, “New Zealanders appear to have a good understanding of the NHC and its role in helping fund the recovery when disaster strikes. Everyone knows that it’s better to act before disaster strikes to protect communities, rather than pick up the pieces afterwards.
New Zealand is highly vulnerable to extreme weather. Climate change is making these events more severe on those affected and the areas they live in. The New Zealanders value the protection insurance provides for their homes and families. However, managing the rising risks from climate change requires a coordinated, nationwide response. Government leadership is essential to invest in resilience measures like avoiding building in high-risk areas and strengthening infrastructure like flood protection schemes.