FENZ opens call for Auckland advisors following adjusted insurance levy
FENZ opens call for Auckland advisors following adjusted insurance levy | Insurance Business New Zealand
Catastrophe & Flood
FENZ opens call for Auckland advisors following adjusted insurance levy
Importance of regional representation emphasised
Catastrophe & Flood
By
Roxanne Libatique
The Fire and Emergency New Zealand (FENZ) board is seeking applications for its newly-formed Auckland Local Advisory Committee (LAC).
The committee is designed to incorporate local input into FENZ’s emergency planning and response efforts, offering advice that reflects the specific needs and concerns of Auckland’s diverse communities.
Under the Fire and Emergency New Zealand Act 2017, LACs are established to provide guidance from a local perspective on issues such as risk management, preparedness, and recovery during emergencies. These committees are intended to strengthen the connection between FENZ and the communities they serve by ensuring that local voices are considered in strategic planning.
“Committees have strong connections with a broad range of people and interests within their communities,” he said, noting that the new LAC will represent Auckland’s 1.65 million residents, including more than 200 ethnic groups across urban and rural areas.
He added: “It is vital to the success of our LAC that we have the right blend of people to give voice to the varied ethnic and cultural communities, businesses, commercial, industrial, and social sectors.”
Devlin said the committee will benefit from members with governance or leadership backgrounds, as well as emerging leaders from across Auckland’s many sectors.
LACs will play a key role in shaping FENZ’s future community engagement and emergency response initiatives. The Auckland committee is part of a national initiative to create 16 LACs across New Zealand.
Applications for the committee are open from Sept. 25 to Oct. 23, 2024.
Levy increase for FENZ adjusted by government
In related news, the New Zealand government has revised plans for an increase in the FENZ levy, which is collected through insurance premiums.
Furthermore, a proposed flat fee on vehicle insurance, originally set at $40, has been reduced to $25. Currently, the levy on vehicle insurance stands at $9.53.
Internal Affairs Minister Brooke van Velden explained that these adjustments were made to balance funding for FENZ while avoiding undue financial pressure on policyholders.
The government has also directed FENZ to achieve $60 million in savings by 2029 in order to improve its financial sustainability.
FENZ, which receives 97% of its funding from levies on insurance, has faced opposition from the insurance industry, which contends that the service should be funded directly by the government rather than through policy levies.
FENZ previously defended the initial 12.8% levy increase, citing operational needs such as fire station upgrades, asbestos remediation, and the replacement of an ageing fleet of fire trucks. The agency’s costs are projected to rise to $748 million next year, with capital expenses nearing $90 million.
Insurers support reduced levy hike
The Insurance Council of New Zealand (ICNZ) has welcomed the reduction in the planned levy increase.
“Insurance premiums are driven by a number of factors, some of which are out of our control such as reinsurance rates and taxes and levies,” he said, while acknowledging the vital role FENZ plays in emergency response.
He also highlighted ongoing concerns about funding FENZ through insurance levies, calling for a shift to alternative funding mechanisms.
Faafoi pointed out that insurance premiums are affected by multiple factors, including reinsurance costs and taxes.
ICNZ has pledged to work closely with the Department of Internal Affairs and FENZ to ensure that the levy changes are implemented efficiently and without additional costs to consumers.
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