Insurers on standby as flooding forces evacuations on North Island’s east coast

Insurers on standby as flooding forces evacuations on North Island’s east coast | Insurance Business New Zealand

Catastrophe & Flood

Event highlights industry’s calls for better protections against natural disasters

Catastrophe & Flood

By
Roxanne Libatique

Insurance companies are on standby as heavy rain and large waves on North Island’s east coast have led to evacuations due to river flooding and coastal inundation.

“Crews are out around the region assessing damage to roads, checking river levels and bridges, so please be patient while this is done. If you don’t need to be on the roads, please just stay home, “ it said.

Both regions were severely affected by flooding earlier in 2023 after Cyclone Gabrielle.

ICNZ chief executive Kris Faafoi acknowledged the bill’s goal to accelerate 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 increased 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

“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,” Faafoi 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.