New Zealand’s natural peril insurance scheme says it is “better placed to respond” after securing a record $NZ12.3 billion ($10.17 billion) in reinsurance for the next year.

Natural Hazards Commission Toka Tu Ake CEO Tina Mitchell says international reinsurers’ “willingness to increase their support ... reflects the strength of our scheme, the quality of our natural hazard science and modelling, our ongoing investment in resilience and the transparency of our long-standing engagement with reinsurers.

“This program provides peace of mind that New Zealand will have access to the funding needed to recover from major natural hazard events and support affected communities when they need it most.”

NHC says the reinsurance program has grown by $NZ2.1 billion ($1.74 billion) – or 20% –compared with last year, and it was secured “on a more cost-effective basis”.

Ms Mitchell added: “It provides confidence that funding will be available to help pay claims and support recovery, while helping protect the Crown’s balance sheet.”

The NHC provides the “first layer” of natural hazards insurance for homes and residential land, with private insurers covering losses above the commission’s payout caps.