ANZIIF backs calls for urgent climate action amid growing threats

The Australian and New Zealand Institute of Insurance and Finance (ANZIIF) has voiced its support for the Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ), calling for accelerated efforts to tackle the growing threats posed by climate change.

This comes in response to a report from New Zealand’s Climate Change Commission, which highlighted the slow progress in addressing climate-related risks.

Slow progress in climate adaptation in New Zealand

The commission’s report emphasised that current climate adaptation measures are not keeping pace with the increasing frequency and severity of extreme weather events.

ICNZ chief executive Kris Faafoi pointed out that over 750,000 people and more than 460,000 buildings across the country are at risk of flooding, representing a substantial financial exposure.

He stressed the importance of coordinated action to mitigate these risks, particularly in the face of growing vulnerabilities.

“We support the commission’s findings that urgent action is needed to address the impacts of climate change,” he said.

Role of insurance industry in managing climate risks

Supporting ICNZ’s calls for swift climate action, ANZIIF CEO Katrina Shanks highlighted the role of insurance professionals in managing climate risks, noting that they face new challenges when dealing with policies and claims related to extreme weather.

“Climate change has significantly contributed to the weather events that we have experienced over the last two years,” she said, adding that the impact on insurance professionals has been substantial.

ANZIIF has made a range of resources available to support insurance professionals in navigating these challenges, including the webinar “What Does a Climate Ready Insurer Look Like?” and a follow-up Q&A session, both accessible to the public until Sept. 24.

New Zealanders call for enhanced climate adaptation

In addition, a recent survey by Ipsos Ltd, conducted on behalf of AMI, State, and NZI, revealed that 65% of New Zealanders believe more resources should be dedicated to addressing climate hazards.

The survey also found that 82% of respondents prioritise making infrastructure and buildings more resilient to climate impacts.

However, public satisfaction with the government’s response to climate change appears to be declining. For the first time, more respondents rated the government’s actions as “poor” (40%) compared to those who rated them as “good” (27%).

The survey also highlighted concerns about rising insurance premiums due to natural disasters, with 70% of respondents acknowledging this as a key factor. Many New Zealanders believe reducing climate risks could help curb these increases.