The Insurance Council of New Zealand has pressed for the development of “ambitious adaptation goals” in a presentation to a parliamentary inquiry.

“The urgency of the climate crisis cannot be overstated,” CEO Kris Faafoi said today.

“New Zealand’s vulnerability to climate-related hazards, including rising sea levels, coastal erosion and extreme weather events, requires a clear and co-ordinated approach, which the government is best placed to lead on.”

Mr Faafoi says ICNZ favours ambitious goals and clear outcomes, such as a defined level of resilience by 2050, with the costs estimated as closely as possible so funding needs are understood.

It acknowledges adaptation is likely to require investment from a variety of sources including the private sector and the development of financial instruments such as resilience bonds.

The Finance and Expenditure Committee inquiry, established last year and due to report by September 5, will recommend “high-level objectives and principles” for a model to support the development of policy and legislation on climate adaptation.

The inquiry called for submissions this year and an expert working group report on “managed retreat” has fed into the process.

ICNZ’s submission says climate change is a societal problem and adaptation requires co-ordination across central government, councils, the private sector and affected communities.

“A co-ordinated approach should also consider the government’s work in related areas such as resource management reform [and] housing and fast-track approval for infrastructure development to ensure there is an alignment of objectives and incentives,” Mr Faafoi said.

“For example, ICNZ is supportive of reforms that bolster adaptation, resilience and recovery from natural disasters and prevent developments in areas that exacerbate risk.”

ICNZ has warned of impacts on premiums and insurance affordability if risks are not addressed.

“We have seen first-hand the impacts of the Auckland Anniversary Weekend and Cyclone Gabrielle events on lives, property and the economy,” Mr Faafoi told the committee.

“By taking a proactive approach, adaptation measures can not only reduce these risks but also contribute to the economy’s security and community resilience.”

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