The Natural Hazards Commission Toka Tū Ake (NHC) has published an independent review into how its natural hazards insurance was delivered following the 2023 North Island Weather Events, and outlined the areas where it will be leading continuous improvement based on the findings.

The events were significant for many New Zealanders and the widespread and complex damage affected thousands of homeowners, unexpectedly changing the shape of many communities.

“We want to do our very best for insured homeowners who call on our scheme after an event. Reviewing how our insurance was delivered to them following these events helps us to evaluate our response, identify where the approach worked well and uncover any areas for improvement,” says NHC Chief Executive Tina Mitchell.

“We know from changing weather patterns and severe storms in other parts of the world that events like this could happen again in the future. The review has shown our approach with private insurers is better for homeowners, but there are areas where we can keep improving,” says Mitchell.

“We’ll be applying what we’ve learned from the review, so other homeowners get the benefit of those improvements next time.”

The most significant events managed through partnership with insurers

Natural hazards insurance is delivered through a partnership established in 2021 between NHC and private insurers. Homeowners only have to call one organisation – their insurer - to lodge their claims, and payments are then sorted out in the background between NHC and the insurers.

The events were the largest managed under the model to date.

The review found homeowners had a better experience than they did in Canterbury, when separate claims needed to be made to NHC and a private insurer. The vast majority of claims were also settled within agreed timeframes. The review commended NHC for community engagement alongside insurers, as well as providing additional industry training to support more engineers being able to work on claims.

In terms of areas for improvement, the main theme impacting homeowner satisfaction was the experience when making claims for land damage. Areas that can cause frustration include the strict legal limits that apply to the cover for land damage, low awareness of those limits, and the time it takes to process a land claim which can involve a number of technical assessments.

The review made recommendations for NHC to increase homeowner understanding of NHCover and its limits, look at the ways NHC and insurers work together, and consider ways to speed up or adjust claim assessment processes when resources are stretched across a number of different agencies.

“We have found the review very insightful and it gives us targeted areas to focus on as we continuously improve the model. I’m also pleased that many of the recommendations touch on activities we already have underway. For example, we have been working hard to encourage New Zealanders to get to know their natural hazards insurance cover and its limits through campaigns, and will continue to do so,” says Mitchell.

Implementing the review recommendations for better homeowner recovery

In response to the review, NHC has published an implementation plan outlining areas of focus and clear deliverables for NHC to keep improving the homeowner experience following an event.

“We will work with insurers, local councils and communities as we implement our response to the review. Their insights and perspectives will be critical, as steps are taken to be prepared for the next event,” says Mitchell.

The review is available here: North Island Weather Event review :: Natural Hazards Commission Toka Tū Ake

The implementation plan is available here: North Island Weather Event implementation plan :: Natural Hazards Commission Toka Tū Ake

About the Natural Hazards Commission

The Natural Hazards Commission Toka Tū Ake exists to help New Zealanders prepare for and recover from the impact of natural hazards. One of the ways we do this is by providing natural hazards insurance for homes and residential land.

Homeowners have access to our scheme if they have an insurance policy with fire cover. The premium paid to insurers includes a Natural Hazards Insurance Levy, which is the amount homeowners pay for this cover. 

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