The chair of a recent report on New Zealand’s climate adaptation strategy has clarified that the government will continue to play a role in supporting flood-affected communities, despite concerns raised over the report’s recommendations.
Matt Whineray, who led the panel behind the report, said that while the government’s approach to property buyouts and compensation may evolve, public support for those facing hardship will remain a key consideration.
Whineray addressed criticism that the report suggested flood victims would eventually be left to manage their own risks without government assistance.
He said that, even after a proposed transition period of around 20 years, government intervention would not be eliminated.
“I think the government will always have a role in alleviating hardship – that’s my view, and that’s the discussion we had at the reference group – but most critically, it’s not linked to the property value,” Whineray said, as reported by RNZ.
He noted that the current expectation of full compensation for pre-flood property values is unsustainable as climate risks and the number of affected properties increase.
The report proposes moving away from automatic, full-value buyouts for flood-damaged properties.
Whineray pointed to international examples where repeated rebuilding in high-risk areas has led to governments becoming de facto insurers of last resort.
He suggested that alternatives, such as capping relocation assistance, could help manage public costs while still providing support to those in need.
“It’s just how you determine how you do that and step away from a world where you say someone gets to get $5 million because that’s what they thought it was worth the day before the event happened,” Whineray said.
The insurance industry has responded to the climate adaptation proposals by emphasising the need for reliable risk data and transparent hazard modelling.
Tower Limited, a major New Zealand insurer, has publicly endorsed the Independent Reference Group’s recommendations for a nationally consistent approach to hazard assessment.
Paul Johnston, CEO of Tower, said that nearly half of New Zealanders lack information about their property’s exposure to climate-related risks.
He stressed that improved access to risk data is essential for both insurers and policyholders.
“Tower has long advocated for nationally consistent hazard modelling and greater data transparency for all New Zealanders,” Johnston said.
He highlighted the importance of risk-based pricing in sending accurate market signals.
“The insurance sector has a vital role in New Zealand’s ongoing response to the increasing impacts of climate-related weather events and insurers need long-term certainty around climate adaptation policy to remain attractive to global reinsurers and help keep insurance accessible and affordable,” he said,” Johnston said.
