Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

High insurance costs important for climate change action

High insurance costs important for climate change action: James Shaw


By Pattrick Smellie

April 11 (BusinessDesk) - Climate Change Minister James Shaw is backing insurers to raise premiums to discourage New Zealanders from living in areas likely to bear the brunt of climate change, particularly low-lying coastal areas.

The Green Party co-leader also noted such moves could create "panic" among landowners in affected areas, judging by the reaction of Wellington homeowners to the recent threat that insurance could be withdrawn.

"That wasn’t true, as I understand it, but the initial reporting certainly created concern – possibly even a moderate sense of panic in the capital," Shaw said, acknowledging that the Wellington example involved seismic risk rather than climate change.

"Evidence from overseas suggests that high insurance premiums and the unavailability of insurance have a much more direct and stronger impact on private decision-making than the uncertainty of if or when extreme events might happen," he said in notes for a speech to an insurance industry summit hosted by Australian insurer IAG in Auckland.

Sea level rise was likely to have "a significant impact on New Zealand as much of our urban development and infrastructure is in coastal areas", Shaw said.

Risks could be managed in some areas to "keep housing stock insurable".

"In others, where there is not a risk but a certainty, insurance withdrawal may be inevitable, and we need to look at how this can be managed."

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Shaw indicated that central government may bear some of the inevitable cost of landowners suffering total losses caused by climate change impacts.

"We need to work towards a system that adequately and fairly shares risk across central and local government, private individuals, and the insurance and banking industries".

He also promised the government's long-awaited and now slightly overdue Net Zero Carbon Bill was "close".

"It’s taken longer than you or I might have anticipated or wanted, but it’s in good shape and on track to still go through the Parliamentary process this year," he said. "But it’s got to be legislation that lasts if we’re to provide certainty that our emissions will stop consistently rising and start consistently falling."

(BusinessDesk)

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.