The Treasury on behalf of the Associate Minister of Finance (Hon David Seymour) is undertaking a targeted consultation on proposed options to change the financial settings and levy settings under the Natural Hazards Insurance Act 2023 (NHI Act). This review aims to ensure the scheme remains sustainable, and effective in protecting communities from natural hazard risks. As set out in the NHI Act, these settings are to be reviewed at least every 5 years.
This consultation is designed to engage with targeted stakeholders, including industry professionals, subject matter experts, and community representatives, to gather insights on the financial settings and levy settings including potential adjustments to levy rates, financial structures, and other critical settings. Feedback from these stakeholders will inform the final recommendations to the Minister.
Key Information:
- Consultation Period: 21 January 2025 to 28 February 2025
- How to Participate: Invitations have been extended to targeted stakeholders. If you have been contacted, details on how to provide feedback are included in your invitation.
We are committed to a transparent consultation process that reflects the perspectives of the targeted stakeholders. All feedback received will be reviewed and considered in the development of final recommendations to Ministers.
Contact Us:
If you have questions about the review or the consultation process, please email us at [email protected]
Background
On 1 July 2024 the Associate Minister of Finance (Hon David Seymour) presented the first Funding and Risk Management Statement (FRMS) issued under section 136 of the Natural Hazards Insurance Act 2023. The FRMS ensures transparency and confidence in managing the costs associated with claims and to communicate the financial strategy of the Crown to both policyholders and insurers.
The Treasury recommended the financial settings and levy settings be reviewed due to a significant increase in estimated losses arising from the 2022 update to the National Seismic Hazard Model (NHSM), the need to ensure the sustainability of the Natural Hazards Insurance Scheme, and to avoid unfairly burdening future generations.