New Zealand’s Natural Hazards Commission Toka Tū Ake (Natural Hazards Commission or NHC) has issued its final annual report under its new name following its rebranding from the Earthquake Commission (EQC).
The report highlighted a year centred on preparedness initiatives and a renewed focus on homeowner awareness around natural hazard risks.
Though New Zealand experienced a year with fewer major earthquakes and weather-related incidents, the commission remained active, particularly due to the recovery from the early 2023 North Island weather events.
Board chair Chris Black noted that the reduced number of catastrophic events allowed the organisation to focus on claims processing and community recovery efforts.
“The relatively quieter financial year claim-wise has allowed us, in conjunction with our insurer partners, to focus on the recovery effort brought about by the impacts of the 2023 North Island weather events,” he said.
He reported that despite the complexity of land-based claims, the NHC managed to meet its timeliness goals for these events and processed an additional 4,000 claims for other natural hazard events during the year.
A key challenge following the North Island events was addressing limited public awareness about land coverage specifics under the NHC’s insurance.
Black explained that new initiatives aim to provide better information on land claim processes and timelines, with a focus on helping homeowners understand that compensation levels may not always cover the full cost of land reinstatement.
The year also saw the rollout of the Natural Hazards Insurance Act 2023, introducing new standards for claim support and handling for affected homeowners.
The act aims to ensure a transparent, homeowner-centred claims process, with additional steps in place if claim outcomes are not fully satisfactory.
The commission also reported progress in processing reopened claims from the Canterbury earthquake sequence, with Black noting a 21% reduction in these cases.
“These claims often involve previously undiscovered damage. Despite these challenges, we reduced the balance of reopened claims by 21% through putting homeowners at the heart of our work and focusing on creating a positive claims experience for them,” Black said.
The NHC’s on-sold program for Canterbury homeowners resulted in 241 completed rebuilds and repairs, along with 161 additional applications settled.
Further highlights included the launch of the Natural Hazards Portal, which drew:
The commission also helped develop a Funding and Risk Management Statement to project the Natural Hazard Fund’s future financial balance over the next five years.
