Tower Limited has publicly supported a new climate adaptation framework proposed by New Zealand’s Independent Reference Group (IRG), emphasising the importance of data transparency and consistent hazard assessment for the insurance sector and the wider community.
Paul Johnston, CEO of Tower, stated that the insurer views the IRG’s report as an important development for the sector.
“Tower has long advocated for nationally consistent hazard modelling and greater data transparency for all New Zealanders,” he said.
He pointed out that a significant portion of New Zealanders remain uncertain about the risks their properties face from climate change and natural disasters.
“Tower’s research shows that 48% of New Zealanders say they lack information about their property’s exposure to climate-related risks and natural disasters,” Johnston said.
Johnston said consistent national hazard modelling and improved access to risk information are essential for both insurers and policyholders.
“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. Risk-based pricing plays a vital role in this by helping to send important market signals,” he said.
Tower calls for the government to move quickly to establish a bipartisan adaptation framework, which it said would provide stability for all parties involved.
The IRG – which includes representatives from the insurance sector, finance, iwi, and local government – has recommended the creation of a centralised database of hazard and climate risk data.
The group argued that property owners, insurers, Māori, and businesses need access to reliable, standardised information to make informed decisions.
A phased transition over 20 years is suggested to allow the market to adjust to new approaches in risk sharing and adaptation. During this period, insurance premiums, property values, and lending terms would increasingly reflect the actual risk profile of properties.
The IRG also proposed a “beneficiary pays” principle, where central government would fund adaptation measures that protect national interests, while local adaptation – especially for Māori land and cultural assets – would be supported through targeted funding.
To implement the proposed framework, the IRG recommended legal changes that would require councils to integrate climate risk considerations into civil defence, infrastructure, and land-use planning.
Councils would be expected to evaluate a range of adaptation strategies, including both protective measures and managed retreat.
The IRG also suggested reducing liability risks for decision-makers, enabling more decisive action at the local level.
For Māori land, the IRG supports iwi-led adaptation planning, with co-governance arrangements between local and central government.
The group noted that some regions are already piloting such models and encourages their broader adoption.
The Environmental Defence Society (EDS) has expressed reservations about the absence of a formal managed retreat framework and enforceable restrictions on new development in high-risk areas.
EDS policy director Raewyn Peart warned that, without a coordinated approach, relocation may only occur after significant damage has taken place, potentially leaving those without sufficient insurance more vulnerable.
Peart also highlighted the challenges local authorities may face in planning service withdrawals without a national retreat strategy and recommended the adoption of a National Environmental Standard to restrict new construction in hazard-prone zones.
Climate Change Minister Simon Watts has confirmed that the government is reviewing the IRG’s proposals alongside previous inquiries and related advice.
He clarified that the report does not represent current government policy, but said its recommendations will inform the development of a national adaptation framework.
