The Climate Change Response Amendment Bill has been welcomed by insurers for setting out a long-awaited framework for climate adaptation, but they warn that funding, implementation and durable political support will be critical to turning plans into meaningful risk reduction.
The Insurance Council of New Zealand | Te Kāhui Inihua o Aotearoa (ICNZ) Chief Executive Kris Faafoi said reducing risk in vulnerable communities was critical to protecting people and supporting continued access to insurance.
“The introduction of this Bill is good to see, but the proof will be in the doing.
“Planning is important, but what insurers, councils and communities need to see now is action that reduces risk and helps protect people, property and infrastructure,” Kris Faafoi said.
The Bill will require adaptation planning in the highest-risk areas, with councils required to plan how high-risk communities prepare for the impacts of climate change. Plans are expected to cover at least 30 years and set out the sequence of actions and investment needed to manage climate-driven natural hazard risks over time.
Kris Faafoi said long-term planning must be backed by long-term certainty.
“Keeping communities safe from natural hazards will require sustained action and investment over many years.
“Councils need confidence that the policy framework and funding will endure beyond electoral cycles so they can make long-term decisions about reducing risk.
“That’s why government leadership and durable cross-party support is essential. Long-term adaptation planning requires confidence that policy settings and funding arrangements will endure,” Kris Faafoi said.
“The biggest challenge now is moving from planning to funded delivery. Councils will need support to identify high-risk areas, work with communities and deliver the mitigation needed to reduce risk.
“Some councils are already meeting this challenge, but others will need help. Councils should not be expected to face this alone.”
ICNZ has previously called for greater certainty around funding for local risk reduction and resilience projects. Earlier this year it proposed replacing the Fire and Emergency New Zealand levy with a Community Protection Levy to help fund projects that reduce risk and strengthen community resilience.
Kris Faafoi said the key issue for insurers is whether New Zealand takes action to reduce risk, because that is what will help protect communities and support ongoing access to insurance.
“We need investment in risk reduction so communities are safer and insurance is accessible in the future.
“This legislation can help provide the framework, but what matters now is urgency, practical delivery and a credible funding pathway.
“If we get that right, we can better protect communities from natural hazards and help keep insurance accessible for New Zealanders,” Kris Faafoi said.
