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Insured losses from climate events in recent weeks surpass 2022 losses from similar Nat CATs

Insured losses from the recent extreme weather events in New Zealand would exceed the comparable losses for all of 2022 which was already a record year for insured losses from extreme weather, says the Insurance Council of New Zealand (ICNZ).

Total economic losses from recent climate events involving storms and massive flooding will run into billions of dollars.

Need to build back better

New Zealand must build back better from the catastrophic extreme weather events of the past two weeks, says the ICNZ.

“Repairing and rebuilding property and infrastructure in high-risk areas to the same specifications as in the past will only lead to a repeat of the dreadful consequences we have all seen. Indeed, it could be worse with more extreme and frequent weather events as a result of climate change,” ICNZ chief executive Tim Grafton said.

“Now is the moment to reset and ask questions about whether to rebuild in some locations and if we do how to rebuild better to better protect ourselves.”

“Most communities have infrastructure built decades ago that may have been fit for the hazards of the time, but are now demonstrably inadequate. Massive and sustained investment is required to address that.”

But every dollar invested in risk reduction will save many more dollars in future economic costs, keep people safer and reduce the stress, trauma, and loss to the community from similar events in the future.

Clear line required

“Future development needs to take a long view – houses are built to last 50 years or more. It is time to draw a very clear line in the sand and not consent to build in dumb places and in a way that can’t cope with what’s to come.”

ICNZ spoke yesterday before Parliament’s Environment Select Committee considering the Natural and Built Environment Bill which, amongst other matters, contains draft provisions to reduce risks from natural hazards as a condition of rebuilding after a disaster. This proposed legislation does not fully come into effect for several years.

ICNZ said, "The question that should be asked now is whether we can afford to wait till this Bill and accompanying legislation to replace the RMA, the Spatial Planning and Climate Change Adaptation Bills, take effect."



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