Latest news with #Faafoi
NZ Herald
17-07-2025
- Business
- NZ Herald
Government rethinks home owner buyouts amid rising climate costs
But, in a changing world and climate where these events are happening harder and faster, is the idea of the Crown stepping in with unlimited cash sustainable? This week, Prime Minister Christopher Luxon said the Government 'won't be able to keep bailing out people in this way'. Insurance Council New Zealand chief executive Kris Faafoi told The Front Page it's not the first time the Government has voiced similar views. 'Regardless of which stripe you are, the appetite for continuing the kind of buyouts that we've seen over the last decade-and-a half is starting to wane,' Faafoi said. 'That's a Government decision to make. But, from the insurance perspective, if they're gonna invest, if they're gonna spend taxpayer money, then instead of paying out after an event has happened, we'd prefer that you spend that money to protect the communities that we're seeing being devastated by these kinds of events on a relatively regular basis.' Estimates have the amount paid out after the Auckland Anniversary Weekend floods and Cyclone Gabrielle in the billions of dollars. Hundreds of sites in Auckland that are now vacant after storm-damaged homes were removed will be offered to community groups for playgrounds, planting and even grazing sheep and horses. Auckland Council is the new owner of about 260 empty sections from the clearing of homes deemed a risk to life in future storms, and expects to have all 1200 homes in the same category cleared by the end of 2027. The buyout process has left the council with scores of properties of little value, and is a result of a $2 billion Government storm recovery package, set up in October 2023. Faafoi said something needs to be done to reduce the impact of climate events in the future. 'So there are some difficult decisions to be made ... We are seeing these kinds of events happen more and more often. 'Insurance is obviously quite important in those situations for Kiwis to fall back on. You would've seen in the last 12 to 24 months after [Cyclone] Gabrielle, that people have found, along with everything else, that paying those insurance premiums can be a challenge. 'In order to keep it manageable in the long term, that kind of risk reduction, getting infrastructure put in place [has meant] some difficult conversations, so we can make sure that if things do happen, we're lowering the impact of those weather events.' Faafoi said those 'difficult conversations' will have to include the question: who pays? An independent climate adaptation report, released earlier this month by the Ministry for the Environment, suggested home owners whose houses are weather-damaged should not expect buyouts in the future. 'That's the billion-dollar question. At the end of the day, I think the Government will end up deciding that the report from the independent reference group, which said beneficiaries pay. 'Now in some instances, that might be a community or an individual family or business... I think one of the promising signs from that report is in some instances, some communities won't be able to pay, and they see a pretty clear indication that, in some instances central government might have to chip in and make sure it can protect communities. 'It's extremely complex. From an insurance perspective, we wanna see some urgency. We wanna see some clear leadership from central government. We've seen some good indications of that from the Prime Minister this week, and really, we just need to get on with it.' Listen to the full episode to hear more about what changes could happen to buyout schemes, and whether they should be a thing of the past. The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5am. The podcast is presented by Chelsea Daniels, an Auckland-based journalist with a background in world news and crime/justice reporting who joined NZME in 2016. You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify or wherever you get your podcasts.
Otago Daily Times
16-07-2025
- Business
- Otago Daily Times
Insurance Council's aim to ‘reduce risk'
Insurance Council of New Zealand chief executive Kris Faafoi (right) visits St Clair in Dunedin yesterday. He is pictured with South Dunedin Future programme manager Jonathan Rowe. PHOTO: GERARD O'BRIEN The insurance industry wants to be involved in solutions for communities vulnerable to flooding — rather than being eager to retreat, its leading advocate says. Insurance Council of New Zealand chief executive Kris Faafoi visited South Dunedin yesterday. He was interested in ways risk heightened by climate change might be reduced. That might include responses ranging from improved drainage to creation of wetlands and moving homes out of harm's way. "One of our priorities is making sure that we're working with central government and local government to reduce risk for people," Mr Faafoi said. "That obviously protects them and makes insurance more accessible for the long term." Mr Faafoi had a catch-up with South Dunedin Future programme manager Jonathan Rowe. The programme was set up by the Dunedin City Council and Otago Regional Council and is aimed at helping the area to adjust to increased climate threats in the long term. "In terms of the way that the process has been mapped out and executed to this point, we're really impressed with how they've engaged the community," Mr Faafoi said. "A lot of the options that the project is putting before the community could go a long way to reducing the risk," he said. "The kind of methodical, mature and long-term view that they're taking for some of the challenges here is something that the insurance industry is very interested in to make sure that we can be part of it, because insurance for a lot of the people in this community is really important and we want to make sure that we're part of the conversation and hopefully part of the solution," he said. Mr Faafoi's visit came soon after devastating floods in Tasman and comments by Prime Minister Christopher Luxon that the government could not keep bailing out flooded homeowners. Mr Faafoi suggested prevention measures could make a worthwhile difference. "Our message is you can help those communities before you bail them out by actually protecting them by building the kind of infrastructure that they need to protect themselves from those kinds of extreme weather events."
1News
05-07-2025
- Climate
- 1News
Insurance companies want Takapuna golf course used for flood prevention
Insurance companies say using a golf course on Auckland's North Shore to prevent flooding may be a necessary sacrifice for golfers. Auckland Council proposes converting half the Takapuna Golf Course into a flood catchment, which golfing bodies and prominent figures in the sport oppose. Insurance Council chief executive Kris Faafoi said their members received 1000 claims from homes and businesses in the areas around the golf course, after the Auckland Anniversary floods and Cyclone Gabrielle in 2023. "What we're asking, as insurers of those areas, is to make sure we can protect families and keep insurance available to those communities. "We've got to make sure that there's a balanced debate and, as well as the emotion of a golf course and enjoying a golf course, there's a good hard look at some of the realities that might happen if there's another [extreme weather] event like that and how we can protect people from the kind of pain they suffered a little over two years ago." ADVERTISEMENT Faafoi said, as a golfer himself, ideally, the golf course could be maintained, but the council needed to do its job to deal with the natural hazard risk. IAG chief executive Amanda Whiting said the proposal prioritised the safety of Aucklanders living in the surrounding area. She said her insurance company received more than 3000 claims for homes, vehicles and businesses in neighbouring suburbs, after the 2023 weather events. "As New Zealand's largest general insurer, our priority is protecting people, property and communities from the increasing risks posed by extreme weather and flooding. The reality is that climate change is driving more frequent and severe flood events. "Strategic land-use decisions like this, which build resilience and reduce future harm, are essential to keeping insurance both accessible and affordable. "Investing in natural hazard protection now helps avoid far greater costs later." The council said it would assess a revised proposal from Takapuna Golf Club and make a decision in the coming weeks. Construction on any approved plan for the flood catchment at the golf course was not expected to begin until 2027. By RNZ's Jessica Hopkins
RNZ News
30-04-2025
- Business
- RNZ News
Climate change protections will require collaborative, government-led approach
Insurance Council chief executive Kris Faafoi. Photo: RNZ / Angus Dreaver The Insurance Council is encouraging help for property owners to maintain insurance coverage at an affordable price, as increasing risks push costs higher. The council's annual review for 2024 indicates global insurance premiums rose 30 percent last year as global losses exceeded $300 billion. Despite recent increases in premiums, council chief executive Kris Faafoi said there were signs premiums were stablising as inflation eased. However, he said it was critical for communities and property owners to continue to take steps to mitigate risks caused by extreme weather events, such as flooding. The review estimates 675,500 New Zealanders live in harm's way, with 72,000 potentially threatened by sea level rise. "There will be some complex and difficult conversations ahead and it will require a collaborative approach led by government to protect our communities from the impact of climate change," Faafoi said. He said the recently passed Contracts of Insurance legislation will help by setting out the industry's role and consumers' rights at critical times. In addition, he said the industry supported the government's pledge to introduce legislation on climate adaptation this year. "We are committed to leading and elevating the conversation on identifying and reducing risk to safeguard our communities and ensure insurance is affordable and accessible," Faafoi said. "By prioritising and embedding resilience in decision making processes and making sure we don't build in dumb places while also investing in adaptation, New Zealand can reduce natural hazard risks and protect the wellbeing of our communities." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
