IAG NZ urges political consensus to tackle escalating climate challenges

IAG NZ urges political consensus to tackle escalating climate challenges | Insurance Business New Zealand

Catastrophe & Flood

IAG NZ urges political consensus to tackle escalating climate challenges

Company outlines key questions that political leaders must address

Catastrophe & Flood

By
Roxanne Libatique

IAG New Zealand (IAG NZ) has emphasised the importance of political consensus in addressing the country’s growing climate challenges.

The company responded to the Finance and Expenditure Committee’s (FEC) recent report on climate adaptation, describing it as an initial but necessary step in shaping New Zealand’s strategy for managing climate-related risks.

IAG New Zealand CEO Amanda Whiting (pictured) noted that the FEC was tasked with addressing complex issues under tight deadlines.

“They have done a good job of describing the problem and have come up with sensible recommendations,” she said.

“We now need to follow through and keep building understanding and dialogue between political parties on this important issue, so New Zealanders can have much more certainty,” she said.

She also underlined that consensus among political leaders will be crucial to how the country adapts to climate impacts.

Additionally, Whiting highlighted key questions that need to be addressed, such as when to intervene, whose needs to prioritise, and how to balance personal responsibility with governmental action. These are challenging political decisions that must be resolved collectively to safeguard communities in high-risk areas.

“The impacts of our natural hazards are growing, and we need to ensure that our response is equal to the task,” she said, highlighting the significance of making better decisions about where we build, how we protect vulnerable communities, and achieving broad political agreement on investing in infrastructure to mitigate disaster risks.

New Zealand urged to accelerate climate adaptation efforts

IAG NZ’s comments bring to light the Insurance Council of New Zealand’s (ICNZ) calls for faster action on climate change adaptation in light of a recent report from the Climate Change Commission.

ICNZ chief executive Kris Faafoi expressed concern about the findings, pointing to the significant number of New Zealanders and properties exposed to flooding risks.

The commission’s report emphasised the need for proactive risk management, including improved planning for extreme weather events. It also outlined key steps for improving climate resilience, including developing a clear framework for local governments, enhancing community planning, and providing greater clarity on how the costs of adaptation will be shared.

The commission also highlighted that taking steps to mitigate climate risks now could lower the long-term economic costs of future disasters. Studies have shown that every dollar invested in climate adaptation can lead to significant savings by protecting infrastructure and preventing losses.

ICNZ also supports the commission’s recommendation for the government to take a leading role in providing access to resources and information for local adaptation efforts.