Insurance Accessibility Key As Government Reviews Natural Hazards Levy
A survey commissioned by the Insurance Council of New Zealand | Te Kāhui Inihua o Aotearoa (ICNZ) found New Zealanders are torn on paying more to ensure the NHC is properly funded to provide basic cover for natural disasters like earthquakes, landslides and flooding.
The survey shows 50% percent of respondents are not prepared to pay $200 more a year to better fund the NHC. Some 30% are willing to pay more, while 21% are unsure.
"We know it's a difficult time for families, with the cost-of-living foremost in Kiwis' minds as they manage their budgets," ICNZ Chief Executive Kris Faafoi said.
"The Government should make a decision to keep insurance accessible. Taxes and levies already account for around 40% of a home premium.
"Balancing affordability with the sustainability of the NHC Scheme is a shared challenge. The Government, NHC and insurers all have a role to play in keeping premiums manageable.
The survey also found 59% of respondents are aware that part of their insurance premium is a levy that supports the NHC.
"New Zealanders appear to have a good understanding of the NHC and its role in helping fund the recovery when disaster strikes," Kris Faafoi said.
"Everyone knows that it's better to act before disaster strikes to protect communities, rather than pick up the pieces afterwards.
"New Zealand is highly vulnerable to extreme weather. Climate change is making these events more severe on those affected and the areas they live in.
"Kiwi's value the protection insurance provides for their homes and families. However, managing the rising risks from climate change requires a coordinated, nationwide response. Government leadership is essential to invest in resilience measures like avoiding building in high-risk areas and strengthening infrastructure like flood protection schemes.
"Reducing risk through clearer rules, smart investment and strong planning helps protect lives, homes, and businesses and keeps insurance accessible for future generations," Kris Faafoi said.
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