New Zealand will spend an extra $NZ6.2 million ($5.82 million) over the next four years on preparing for natural disasters.

The extra funds for the Ministry of Civil Defence and Emergency Management (MCDEM) were announced in last week’s budget.

Insurance Council of New Zealand CEO Tim Grafton welcomed the investment.

“MCDEM has a stronger focus on risk reduction and if done well will help keep insurance affordable and available,” he told insuranceNEWS.com.au.

Civil Defence Minister Nikki Kaye said the injection is “a significant sum for a small agency”, and will enable staff numbers to grow by 10 to 52.