Op-Ed: It’s time a for Bipartisan, Data-Driven Adaptation Framework

This week, Parliament will debate the Climate Adaptation Inquiry Report and the Government’s response to it. It’s an important moment in shaping New Zealand’s long-term resilience to climate change. The Inquiry was established to support the development of policy to address the physical impacts of climate change, and to aid in the creation of a bipartisan framework that protects our communities long into the future.

Major weather events are the pointy end of climate change. Just last weekend we saw Cyclone Alfred batter our Aussie neighbours and locally, the memory of the Auckland Floods and Cyclone Gabrielle are still fresh in the minds of many, me included.

As the CEO of one of New Zealand’s leading insurers, I regularly witness the toll these weather events take on our communities. Insurance plays a critical role in the resilience and recovery of our country, but it’s just one piece of the puzzle. In the face of climate change we need to work together to drive changes that will improve our long-term resilience. At Suncorp, we strongly support the development of an enduring and bipartisan climate adaptation framework.

The weather events of early 2023 had a direct impact on the lives of many of our customers, and communities, but the effects have been far more reaching. Local councils are rethinking their natural hazard risk; homeowners are looking for more detailed property information and Central government is reviewing its adaptation plans.

Aotearoa New Zealand is highly exposed to natural hazard risks. Lloyd's of London ranks us second in the world for vulnerability to natural hazards, in terms of annual expected losses as a percentage of GDP. The increasing frequency and severity of major weather events also impacts the cost and availability of reinsurance cover, affecting general insurance costs for New Zealanders.

As our elected representatives debate the Climate Adaptation Inquiry’s recommendations, there's seemingly broad agreement that we need a lasting, cross-party framework that clarifies our natural hazard risks, provides incentives for resilience, and confirms the support Kiwis can expect to receive if their home is hit by a future disaster.

Suncorp New Zealand submitted to the Inquiry, emphasizing the need for a balanced and forward-thinking approach to protect New Zealanders' lives and financial well-being.

To protect communities from the worst impacts of weather events we cannot prevent, we believe an effective framework needs:

• Bipartisan Commitment: Climate resilience must be above politics. We need a stable, cross-party agreement that delivers consistent and reliable policies, unaffected by changing governments.
• Competitive Insurance Markets: Insurance is key to our financial resilience. The framework must ensure that insurance remains affordable and accessible by encouraging competitive markets and effective risk management.
• Local Flexibility within National Principles: Communities know best when it comes to local adaptation. Centralised guidelines should set the rules, but local councils and communities should have the flexibility to implement them in ways that make sense for their unique circumstances.
• Effective Planning and Regulation: Aligning climate adaptation with resource management reform is essential. Better planning decisions today can prevent costly rebuilds tomorrow, ensuring we don’t keep repeating past mistakes.
• Smart Disaster Recovery: Every disaster offers lessons on how we can improve. Our adaptation framework should swiftly incorporate these lessons into disaster recovery and emergency management planning, explicitly aiming for stronger resilience after each event.

MP’s have an important choice this week. I urge them to set aside their differences and agree to progress a framework that will protect us all for generations to come. 

About Suncorp New Zealand 

Suncorp New Zealand is part of the Suncorp Group, a trans-Tasman insurance and financial services company. In New Zealand, Suncorp offers general insurance through Vero Insurance and through AA Insurance, a joint venture between Vero Insurance and the New Zealand Automobile Association.