The Insurance Council of New Zealand has welcomed the budget’s resilience funding for communities hit by the Auckland flooding and Cyclone Gabrielle, while urging a continued focus on reducing risks.

CEO Kris Faafoi says the extreme weather events early last year represented New Zealand’s second-largest natural disaster, while climate change is increasing risks and it is known that every dollar invested in flood resilience can save $NZ6 ($5.54) in post-catastrophe costs.

“The measures in budget 2024 to further invest in infrastructure, emergency management and climate adaptation will help build greater resilience and reduce the risk to people’s lives and property,” he said. 

The budget provides $NZ939 million ($867 million) for the recovery of the highway network and to assist councils with local roads.

Community resilience measures include $NZ16 million ($14.8 million) to help councils speed up recovery, including through voluntary buyouts, flood protection works, landslip remediation and local transport.

The budget allocates $NZ23 million ($21 million) of emergency preparedness funding for non-government organisations to replace assets destroyed or damaged in the North Island catastrophes and to help improve responses to future severe weather or emergency events.

ICNZ also welcomes steps to build the country’s knowledge of natural hazards, with further funding for GeoNet and the National Seismic Hazard Model. 

“It’s important that New Zealand takes a long-term view on the risks from natural hazards as we face the prospect of more frequent and severe events due to climate change,” Mr Faafoi said.

“Reducing risks to homes and communities before disasters strike is vital to helping keep insurance affordable and accessible in New Zealand. We urge the government to continue looking at ways to ensure New Zealand is building resilience in the future.”

The government last week released its first full budget since winning the election in October.