Cabinet paper

Cabinet Paper ECO-24-SUB-0099: Natural Hazards Insurance Act: Funding and Risk Management Statement

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Cabinet Paper ECO-24-SUB-0099: Natural Hazards Insurance Act: Funding and Risk Management Statement#

Proposal

1 This paper informs Cabinet about my proposal to issue the first Funding and Risk Management Statement (FRMS) for the Natural Hazards Commission Toka Tū Ake (the Commission)[1]. The paper also informs Cabinet about the outcome of Minister of Finance’s review of two Ministerial Directions issued to the Commission related to the investment of the Natural Hazard Fund (the Fund).

2 The FRMS is required by Section 136 of the Natural Hazards Insurance Act 2023 (the Act) and must be in place when the Act comes into force on 1 July 2024. It provides transparency for how financial settings and levy settings are determined, and how the cost of claims will be shared between the Fund and the Crown.

Notes

  1. [1] The Earthquake Commission Toka Tū Ake will go by the Natural Hazards Commission Toka Tū Ake under the Natural Hazards Insurance Act 2023 from 01 July 2024. I refer to the Commission throughout this Cabinet Paper.

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