Insurer IAG slams New Zealand government's natural-hazards approach as ad hoc and piecemeal

According to RNZ Business, IAG, one of New Zealand's largest general insurers, has published a new report criticising the government's approach to natural-hazard risk management. The report describes the current policy framework as ad hoc and piecemeal, and calls for stronger central coordination.

IAG says New Zealand has faced rising risks from floods, storms and landslides in recent years, but the investment and risk-reduction policy is not sufficiently joined-up. RNZ reports that IAG is aligning itself with industry bodies, local councils and environmental experts, and is urging the government to publish a national natural-hazards strategy.

According to RNZ, the report matters for sustaining reinsurance costs. Insurance premiums have risen sharply in recent years and product availability has tightened in some regions. The New Zealand Treasury said it is reviewing the report and could re-examine the natural-hazards funding framework in the next budget cycle.