Natural Hazards Insurance Act Implemented to further protect homeowners' rights

Seymour also issued the first Funding and Risk Management Statement (FRMS) for the Natural Hazards Commission.

Associate Finance Minister David Seymour announced the implementation of the Natural Hazards Insurance Act, which came into force today. The Act aims to further protect homeowners' rights following natural hazard events and rebrand the Earthquake Commission (EQC) as the Natural Hazards Commission.

"The Government is committed to ensuring Kiwis continue to get reliable insurance cover and claims paid efficiently, so they can recover and move on with their lives in natural disasters," Seymour stated.

"Kiwis have endured numerous adverse events in recent years. While our resilience is commendable, these events provide an opportunity for the Government to learn and enhance processes. The changes introduced by this Act are informed by the Christchurch earthquake, recommendations from the Public Inquiry into EQC, and feedback from claimants' experiences."

Key provisions of the Act include:

Clarifying rules for mixed-use buildings and simplifying excess calculations for claims related to retaining walls, bridges, and culverts.

Introducing procedures to improve the homeowner experience, including a Code of Insured Persons' Rights and access to an independent dispute resolution service.

Strengthening the role of the Natural Hazards Commission in supporting resilient communities by enhancing information sharing, knowledge, and expertise on natural hazard risk management.

Renaming EQC to the Natural Hazards Commission to reflect the broader range of natural hazards covered, as recommended by the 2020 Public Inquiry into the Earthquake Commission.

Seymour also issued the first Funding and Risk Management Statement (FRMS) for the Natural Hazards Commission. The FRMS outlines the determination of financial settings, levy settings, and the cost-sharing mechanism between the Natural Hazard Fund and the Crown.

"To effectively manage and fund claims arising from natural hazards, I have asked the Treasury to review the financial and levy settings. This review will assess the current and potential future financial positions of the fund and the Crown, prioritizing accessible and affordable catastrophe insurance for Kiwis," Seymour explained.

"Decisions on any future changes to the levy will depend on the review's outcome. The current levy remains in place, backed by a statutory government funding guarantee to ensure successful claims are paid out. This Government is committed to helping New Zealanders withstand the impacts of natural hazards so that we can stand strong together."