The Insurance Council of New Zealand (ICNZ) has again called for more funding of mitigation measures as climate change increasingly produces erratic and extreme weather events.

“Climate change will increase the risk of flooding in parts of the country and drought in other areas,” it says in submission to the Productivity Commission.

“Coastal areas will be more vulnerable as sea levels rise. We can also expect more severe windstorms in the west and it is also expected to increase the frequency and type of biosecurity incursions.

“While we cannot control the forces of nature, we can reduce their impact significantly by building our capacity to withstand and recover from natural disasters… reducing risks also helps to keep insurance available and affordable.”

ICNZ backs the establishment of a risk management agency focused on local governments and the enactment of a zero-carbon act.

Last year was the second most costly for New Zealand insurers, with payouts reaching $NZ226.4 million ($218 million). It follows the record of $NZ243 million ($233 million) set in 2017. ICNZ says climate change-induced extreme weather events were the trigger.

Climate change and natural hazards are among topics included in the Productivity Commission’s issues paper on local government funding and financing.