The Earthquake Commission (EQC) has been renamed the Natural Hazards Commission Toka Tū Ake, as mandated by the Natural Hazards Insurance Act, effective from July 1.
This change reflects the commission’s expanded role in addressing various natural hazards, beyond just earthquakes.
The legislation introduces a suite of updates to the nearly 80-year-old insurance scheme.
While the scope of coverage remains largely unchanged, the act aims to clarify entitlements and streamline the claims process for homeowners.
Natural Hazards Commission chief executive Tina Mitchell emphasised the commission’s broader mission.
“The Natural Hazards Commission exists to reduce the impact of natural hazards on people, property, and communities across New Zealand, by providing baseline property cover for insured homeowners, investing in research and education to build more resilient communities, and helping build New Zealand’s readiness to natural hazards,” she said. “The new act reinforces and strengthens this role, and modernises our governing legislation to ensure we are better set up to meet the needs of homeowners now and in the future.”
Incorporating recommendations from the public inquiry into EQC, the Natural Hazards Insurance Act draws on lessons learned from the Canterbury earthquakes.
It aims to simplify claims procedures, including clearer guidelines for excesses and calculations related to retaining walls, bridges, and culverts. Additionally, it expands coverage for mixed-use buildings such as apartments within commercial structures.
Mitchell highlighted improvements in the claims process established two years ago through partnerships with private insurers.
“We simplified the claim experience two years ago through a partnership with insurers that channels insurance claims through your private insurer. These improvements will be further strengthened through a new Code of Insured Persons’ Rights and an independent dispute resolution service,” she said.
She said these updates are timely as New Zealand faces increasing risks from both geological hazards and climate change-related events like severe weather and sea level rise. The commission’s ongoing research and resilience programs are critical in this context.
“Every year, we invest millions of dollars in natural hazards research and work hard to translate that into information that can be used to improve seismic resilience, earthquake engineering, and land use planning,” she said.
Associate Finance Minister David Seymour welcomed the new legislation, highlighting that it strengthens homeowners’ protections.
“The government is committed to ensuring Kiwis continue to get reliable insurance cover and claims paid efficiently, so they can recover and move on with their lives in natural disasters,” he said. “Unfortunately, Kiwis have suffered through their fair share of adverse events in recent years. Our resilience shines through in these situations, but it is also an opportunity for the government to learn and improve processes.”
The Treasury will review financial and levy settings to ensure that catastrophe insurance remains accessible and affordable for New Zealanders.
The existing levy remains in place, supported by a statutory government funding guarantee to assure the payment of successful claims.
“This government is committed to helping New Zealanders withstand the impacts of natural hazards so that we can stand strong together,” Seymour said.
