The Insurance Council of New Zealand, Te Kahui Inihua o Aotearoa (ICNZ) has announced CEO Tim Grafton will step down from his position next year. 

ICNZ says Mr Grafton wants to explore new opportunities following its Annual General Meeting next April. 

Mr Grafton was appointed CEO in November 2012, with the early years of his tenure dominated by the industry’s response to the Canterbury earthquakes and regulatory changes, which saw an increased role for private insurers.

He told insuranceNEWS.com.au today that the aftermath of the quakes exposed fundamental industry flaws and focused attention on finding ways to make claims easier to process and manage. 

“The most important shift has been to become far more customer centric, and efficient in responding to catastrophe and disasters,” Mr Grafton tells InsuranceNews.com.au.

“We now act as agents for the EQC in managing claims and customers, that’s a huge leap forward from what it was a decade ago when that process saw a lot of duplication and overlapping responsibilities.

“By streamlining the process, the customer has one single point of accountability and responsibility, and private insurance has been critical for improving how insurers manage catastrophes.”

Mr Grafton has since overseen the industry’s response to significant events, including the 2016 Kaikoura earthquake and, most recently, Cyclone Gabrielle and the North Island floods, which led to more than $NZ3.5 billion ($3.22 billion) in insured losses.

He says “very significant progress” has been made in settling claims related to this year’s events but warns that the industry faces a difficult hurdle in managing future events without further investment and action. 

“If you look ahead, there will always be big challenges, and one of the biggest ones is climate change and severe weather events”, Mr Grafton said.

“The big task that lies ahead for central and local government is to ensure that New Zealand is more resilient to these events.

“That means prioritising and investing in reducing the risks of climate change that people and their properties face.

“Unless [the government] does that, it won’t be supporting insurance affordability for some high-risk areas.”

Mr Grafton says he still wants to contribute to the industry but is looking to address his work-life balance after “working intensely” over the past few years. 

ICNZ President Toni Ferrier credits Mr Grafton’s work in leading the body through challenges during his tenure and his efforts to engage with the Government to help modernise insurance legislation and regulation. 

“The ICNZ Board are grateful for the contribution that Tim has made to the industry over many years and will be looking to recruit a new CEO who will be as committed to the future of Aotearoa New Zealand, the community and the general insurance sector as Tim has been,” Ms Ferrier said. 

“Until then Tim will continue in his role as CEO and is committed to ensuring a smooth transition to a new CEO for his team and our industry body.”

ICNZ says Mr Grafton will also continue as Vice-President of the Global Federation of Insurance Associations until his departure.