The Natural Hazards Commission Toka Tū Ake (NHC) has secured a record NZ$12.3 billion in reinsurance protection until 2026, a 20 per cent, or US$2.1 billion increase on last year’s NZ$10.3 billion plan.
This insurance will provide New Zealand homeowners with substantial financial protection in the event of a major natural disaster. The National Health Commission said it ensured the implementation of the entire plan in a more cost-effective manner compared to last year.
The coverage includes a $225 million multi-year catastrophe bond issued in 2023, which is valid until May 2027. You can read more about Totara Re Pte. Ltd. (Series 2023-1) Cat Bonds and more, in the trade directory of our sister publication Artemis.
The record underwriting levels reflect the strong confidence that international reinsurers have in New Zealand’s natural catastrophe insurance programme.
NHC chief executive Tina Mitchell said the results were good news for New Zealand homeowners. She continued, “Securing increased reinsurance cover means New Zealand is better able to respond financially in the event of a major natural disaster event. This provides confidence that funds will be available to help pay claims and support recovery, while helping to protect the government’s balance sheet.”
Mitchell added: “International reinsurers have a choice about where to place their capital. Their willingness to increase their support for NHC reflects the strength of our programmes, the quality of our natural hazard science and modeling, our continued investment in resilience and the transparency of our long-term collaboration with reinsurers.”
She continued: “Global reinsurers’ continued support is an important part of New Zealanders’ financial protection. This program provides New Zealanders with peace of mind that New Zealand will be able to access the funding needed to recover from major natural disaster events and support affected communities when they need it most.”
