The Natural Hazards Commission Toka Tū Ake (NHC) has secured $12.3 billion in reinsurance for the year ahead - a jump of $2.1 billion, or 20%, from last year.
This is a record amount of reinsurance - insurance for insurers - for the NHC.
“The record level of cover reflects the strong confidence international reinsurers have in New Zealand’s natural hazards insurance scheme,” the NHC said.
The NHC said it was able to secure the reinsurance programme on a “more cost-effective basis than last year”. The organisation buys cover from reinsurers using a portion of the levies paid by homeowners into the Natural Hazard Fund.
NHC chief executive Tina Mitchell said securing increased reinsurance cover means New Zealand is better placed to respond financially when a major natural hazard event occurs.
“This programme provides peace of mind that New Zealand will have access to the funding needed to recover from major natural hazard events and support affected communities when they need it most,” Mitchell said.
“It provides confidence that funding will be available to help pay claims and support recovery, while helping protect the Crown's balance sheet.”
“International reinsurers have choices about where they put their capital at risk,” Mitchell said.
“Their willingness to increase their support for NHC reflects the strength of our scheme, the quality of our natural hazard science and modelling, our ongoing investment in resilience and the transparency of our long-standing engagement with reinsurers.”
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