New Zealand’s Natural Hazards Commission Toka Tu Ake has secured a $NZ1.15 billion ($1.07 billion) increase to its reinsurance protection.  

The rise compared with last year takes its total to $NZ10.3 billion ($9.56 billion), including $NZ225 million ($208.93 million) from a multi-year catastrophe bond placed in 2023.  

Commission CEO Tina Mitchell says the reinsurance helps ensure homeowners are financially protected from natural catastrophes.  

“If a significant natural disaster should happen and costs exceed $2.2 billion, the scheme can then access up to an additional $10.3 billion for settling homeowners’ claims,” she said.  

The NHC last claimed against its reinsurance program after the 2011 Canterbury earthquakes, when reinsurers covered about $NZ5 billion ($4.64 billion).

Ms Mitchell says the enhanced protection reflects the international market’s confidence in NHC efforts to promote mitigation and resilience.  

“Our long-term investment in research and modelling means we can give reinsurers a transparent understanding of the risks they are insuring.

“International markets also value the scheme’s commitment to community resilience. By funding science and research, then translating that into insights that can be used by decision-makers, we are supporting better building standards, decisions on where new homes are built and government planning.”