The Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ) is urging faster action to address climate change adaptation following the release of a new report from the Climate Change Commission.
The commission’s first assessment of New Zealand’s progress in adapting to climate risks has found that the current efforts are inadequate and falling behind the escalating threats posed by climate change.
ICNZ chief executive Kris Faafoi backed the report’s call for a more urgent and coordinated response to climate risks, noting that around 750,000 people and over 460,000 buildings across New Zealand are vulnerable to flooding. This exposure, he said, represents a significant financial risk.
“We support the commission’s findings that urgent action is needed to address the impacts of climate change,” he said.
He said that New Zealand’s susceptibility to natural disasters makes it vital to adapt now to help protect communities, businesses, and the economy from future impacts.
The Climate Change Commission report revealed that current adaptation measures are not happening at the pace or scale required to address the growing risks.
The report emphasised the need for a shift toward more proactive management of climate risks, including more robust planning for extreme weather events, which have increased in frequency.
For example, the Auckland Anniversary floods and Cyclone Gabrielle have led to insurance claims nearing$4 billion, with total infrastructure damage potentially reaching$14.5 billion, according to government estimates.
To address these challenges, the report highlighted several key recommendations, including:
Faafoi expressed support for these recommendations, emphasising that collaboration between government, councils, iwi, businesses, and communities will be crucial to managing climate risks and keeping insurance affordable for New Zealanders.
“We back the commission’s call that there are things we can do together as a country to provide long-term clarity and certainty around our response to climate change,” he said.
He also stressed the importance of clarity on how the financial burden of climate adaptation will be distributed across sectors.
“Further clarity about how the costs of local adaptation will be shared and the involvement of new targeted funding and financing instruments will be crucial,” Faafoi said.
The Climate Change Commission report also suggested that taking action to mitigate climate risks now will help reduce the long-term economic costs of future disasters.
Research has shown that every dollar invested in climate adaptation can significantly reduce future costs, providing economic benefits by protecting infrastructure and livelihoods.
ICNZ said it supports the commission’s call for the government to take the lead in facilitating access to information and resources for local adaptation planning.
“We support the government taking the lead on exploring ways to facilitate access, availability, and sharing of expertise and information to support local adaptation planning and action,” Faafoi said.
The progress report is part of a series of biennial assessments required by the Climate Change Response Act.
