Inside our National Adaptation Framework Panel

In October, the Government released the country’s first ever National Adaptation Framework. It’s a landmark plan that will change how New Zealand plans for, manages and responds to natural hazards.

It marks the start of big changes that will shape how Kiwis think about risk, their homes and properties, and their insurance cover from now on.

That’s why, Suncorp New Zealand, in partnership with the Insurance Council of New Zealand (ICNZ) hosted a panel event to unpack what it all really means.

The discussion brought together keynote speaker, Hon. Simon Watts, Minister of Climate Change, moderator, Hon. Kris Faafoi, CEO, ICNZ, and a panel of experts including Jimmy Higgins, CEO, Suncorp New Zealand, Dr Penny Kneebone, CEO, Tonkin + Taylor, Richard Hills, Auckland Councillor and Carrie Gage, GM Sustainability, ASB. 

Hon. Simon Watts, Minister of Climate Change

Together, they explored what the Framework’s four pillars mean in practice. Here’s a breakdown of the insights you should know:

Pillar one: Risk and Response Information - better data, better conversations

Pillar one commits to transparency, starting with the creation of the country’s first National Flood Map by 2027, providing Kiwi with a single, nationally consistent view of flood risk.

The key takeaway: As Suncorp New Zealand CEO Jimmy Higgins explained, insurers have always assessed and priced natural hazard risk, but soon, that risk information will be available to everyone.

This will make it easier to be informed of the risks of an individual property and will help to guide conversations with your bank, landlord and insurer as well as guiding short and long-term resilience planning.

Pillar two: Roles and Responsibilities - managing your risk

The second pillar defines who’s responsible for what. Central government will set national standards through legislation, councils will lead local adaptation planning, and individuals and businesses will be expected to manage their own risks.

The key takeaway: ICNZ CEO Hon. Kris Faafoi noted that understanding the different roles and responsibilities will help you plan ahead and make better decisions about where and how to build. 

Advocating for local adaptation is key, because councils that invest in resilience will reduce risk. In the long run, this means insurance is more likely to remain available and more affordable in your community.

Pillar three: Investment in Risk Reduction - a proactive approach

New Zealand is shifting from a cycle of damage and repair towards a proactive approach to managing natural hazards. Investment will be focused on reducing natural hazard risk before disaster strikes.

The key takeaway: As Auckland Councillor Richard Hills said, for now investment in risk reduction will come from central and local government, but over time investment from property owners will likely be required.

By identifying potential risks, you can plan for the future and invest in necessary upgrades. If you strengthen your home and keep on top of maintenance, it’s less likely to suffer severe damage, leading to smaller claims and more affordable insurance.

Pillar four: Cost sharing - government to stop property buyouts

The new Framework aims to ensure the costs of natural disasters are shared across everyone, to encourage risk reduction and make sure markets, including insurance, adjust accordingly.

Notably, the government signaled its intention to stop property buyouts after major disasters.

The key takeaway: As Dr. Penny Kneebone said, homeowners deserve to know the risk they carry and the support they're likely to get.

Since the government plans to stop property buyouts, it’s important you reduce your property’s risk and ensure you have adequate insurance cover. It’s up to you to know what you will and won’t be covered for in the case of a natural disaster. 

What it means for you

The National Adaptation Framework will reshape New Zealand’s insurance landscape over the coming decades. As a property owner, by being proactive and learning your risk profile, you can ensure a more resilient future.

Take a look below at the highlights from the event, to hear directly from the panellists about what the National Adaptation Framework means for the future of New Zealand, and how it will impact your property and insurance.

Wondering what this means for you? Talk to your broker about these upcoming changes, to plan necessary next steps