Latest news with #NaturalHazardsCommissionTokaTūAke
Yahoo
a day ago
- Business
- Yahoo
NZ Natural Hazards Commission raises reinsurance cover to $6.2bn
The Natural Hazards Commission Toka Tū Ake (NHC) of New Zealand has announced an increase in reinsurance coverage to NZ$10.3bn, aiming to enhance the financial resilience of homeowners in the face of natural disasters. The new coverage marks a NZ$1.15bn increment from the previous year's reinsurance total and includes NZ$225m from a multi-year catastrophe bond placed in 2023. The NHC last utilised its reinsurance programme following the Canterbury earthquakes, with reinsurers contributing approximately NZ$5bn towards recovery costs. NHC CEO Tina Mitchell said: 'One way we ensure there is funding available to pay claims for natural hazards damage is by purchasing reinsurance – insurance for insurers. 'All insured homeowners across New Zealand contribute levies to the scheme. We use a proportion of those levies to purchase reinsurance cover at a national level. Mitchell added: 'The scheme is held in very high regard globally. Our long-term investment in research and modelling means we can give reinsurers a transparent understanding of the risks they are insuring.' Following legislative changes in 2023, the entity previously known as the Earthquake Commission (EQC) has been renamed and its scope expanded. The Natural Hazards Insurance Act 2023, which came into force on 1 July 2024, replaces the Earthquake Commission Act 1993. It introduces a modernised framework for insurance against natural hazards, considering the experiences from earthquakes and the findings of the 2020 Public Inquiry into the Earthquake Commission. The NHC now offers insurance and expertise for natural hazards, not limited to earthquakes. Correspondingly, the EQCover insurance product has been named NHCover, and the Natural Disaster Fund is now known as the Natural Hazard Fund, aligning with the organisation's broadened focus. "NZ Natural Hazards Commission raises reinsurance cover to $6.2bn " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Scoop
6 days ago
- Business
- Scoop
International Markets Show Unprecedented Confidence In NZ's Natural Hazards Insurance Scheme
Natural Hazards Commission Toka Tū Ake (NHC) has secured a significant boost in reinsurance protection for New Zealand, with $10.3 billion locked in from 1 June 2025 to help protect homeowners from the impact of natural hazards. This is a $1.15 billion increase from last year's total reinsurance cover and includes $225 million from a multi-year catastrophe bond placed in 2023. NHC Chief Executive Tina Mitchell explains, 'one way we ensure there is funding available to pay claims for natural hazards damage is by purchasing reinsurance - insurance for insurers.' 'All insured homeowners across New Zealand contribute levies to the scheme. We use a proportion of those levies to purchase reinsurance cover at a national level,' she says. 'If a significant natural disaster should happen and costs exceed $2.2 billion, the scheme can then access up to an additional $10.3 billion for settling homeowners' claims.' Reinsurance companies operate in a global market and decide where to offer support based on the risk profile of the country, the reputation of the organisation and commercial considerations. 'The scheme is held in very high regard globally. Our long-term investment in research and modelling means we can give reinsurers a transparent understanding of the risks they are insuring.' says Tina. 'We are pleased to secure this level of reinsurance for New Zealand.' 'International markets also value the scheme's commitment to community resilience,' she says. 'By funding science and research, then translating that into insights that can be used by decision-makers, we are supporting better building standards, decisions on where new homes are built and government planning.' NHC last claimed on its reinsurance programme after the Canterbury earthquakes, with approximately $5 billion of costs covered by reinsurers. 'We can't change the natural hazards we live with, but we can be prepared. Ensuring we have access to the right financial support provides peace of mind for New Zealand homeowners.' The Natural Hazards Commission Toka Tū Ake exists to help New Zealanders prepare for and recover from the impact of natural hazards. One of the ways we do this is by providing natural hazards insurance for homes and residential land. Homeowners have access to our scheme if they have an insurance policy with fire cover. The premium paid to insurers includes a Natural Hazards Insurance Levy, which is the amount homeowners pay for this cover.
