{"id":396,"date":"2025-06-05T08:45:18","date_gmt":"2025-06-05T08:45:18","guid":{"rendered":"https:\/\/hongkongmerchant.com\/?p=396"},"modified":"2025-06-18T15:02:50","modified_gmt":"2025-06-18T15:02:50","slug":"nz-natural-hazards-commission-adds-1-15bn-to-reinsurance-tower-renews-10-3bn-for-2025","status":"publish","type":"post","link":"https:\/\/hongkongmerchant.com\/index.php\/2025\/06\/05\/nz-natural-hazards-commission-adds-1-15bn-to-reinsurance-tower-renews-10-3bn-for-2025\/","title":{"rendered":"NZ Natural Hazards Commission adds $1.15bn to reinsurance tower, renews $10.3bn for 2025"},"content":{"rendered":"

This content is copyright to www.artemis.bm<\/a> and should not appear anywhere else, or an infringement has occurred.<\/p>\n

New Zealand\u2019s Natural Hazards Commission Toka T\u016b Ake (NHC), formerly known as New Zealand\u2019s Earthquake Commission (EQC) Toka T\u016b Ake, has added more limit to its reinsurance tower, lifting the top by $1.15 billion for 2025, in a renewal securing $10.3 billion of cover for disaster losses in the country.
\n<\/span>
\n\"NewThe organisation has been growing New Zealand\u2019s disaster reinsurance protection over recent years, from a\u00a0nearly $7 billion reinsurance tower in 2021<\/a>, to\u00a0$7.2 billion for 2022<\/a>, to\u00a0$8.2 billion for 2023<\/a>, and then $9.2 billion in 2024.<\/a><\/p>\n

As readers are aware, typically, a number of insurance-linked securities (ILS) funds participate, taking a small share of the reinsurance program on a fronted basis in recent years.<\/p>\n

Of course, the NHC also made its debut into the catastrophe bond market in 2023 and that NZ $225 million\u00a0Totara Re Pte. Ltd. (Series 2023-1)<\/a>\u00a0catastrophe bond is still in-force and part of the reinsurance tower this year.<\/p>\n

NHC Chief Executive Tina Mitchell, commented: \u201cOne way we ensure there is funding available to pay claims for natural hazards damage is by purchasing reinsurance \u2013 insurance for insurers.\u201d<\/p>\n

She continued: \u201cAll insured homeowners across New Zealand contribute levies to the scheme. We use a proportion of those levies to purchase reinsurance cover at a national level.<\/p>\n

\u201cIf 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\u2019 claims.\u201d<\/p>\n

Last year, the reinsurance tower attached at $2.1 billion of losses<\/a>, so slightly lower down.<\/p>\n

Mitchell also added: \u201cThe scheme is held in very high regard globally. Our long-term investment in research and modelling means we can give reinsurers a transparent understanding of the risks they are insuring. We are pleased to secure this level of reinsurance for New Zealand.\u201d<\/p>\n

\u201cInternational markets also value the scheme\u2019s commitment to community resilience,\u201d she says.<\/p>\n

\u201cBy 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.\u201d<\/p>\n

The 2025 renewal highlights the continued confidence international markets have in New Zealand\u2019s disaster risk framework, the credibility of the NHC, and the growing importance of diversified capital in supporting national resilience.<\/p>\n

The NHC last called on its reinsurance programme in the wake of the Canterbury earthquakes in September 2010 and February 2011, with reinsurers covering approximately $5 billion of the total claim costs. The scheme\u2019s role is to ensure that financial support is available to settle claims efficiently after major disasters, while also helping to keep residential insurance premiums affordable.<\/p>\n

\u201cWe can\u2019t change the natural hazards we live with, but we can be prepared,\u201d Mitchell said.<\/p>\n

\u201cEnsuring we have access to the right financial support provides peace of mind for New Zealand homeowners.\u201d<\/p>\n

Read all of our reinsurance renewal news coverage.<\/a><\/strong><\/p>\n

NZ Natural Hazards Commission adds $1.15bn to reinsurance tower, renews $10.3bn for 2025<\/a> was published by: www.Artemis.bm<\/a>
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This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. New Zealand\u2019s Natural Hazards Commission Toka T\u016b Ake (NHC), formerly known as New Zealand\u2019s Earthquake Commission (EQC) Toka…<\/p>\n

Continue Reading “NZ Natural Hazards Commission adds $1.15bn to reinsurance tower, renews $10.3bn for 2025”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":398,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-396","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured"],"_links":{"self":[{"href":"https:\/\/hongkongmerchant.com\/index.php\/wp-json\/wp\/v2\/posts\/396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hongkongmerchant.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hongkongmerchant.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hongkongmerchant.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hongkongmerchant.com\/index.php\/wp-json\/wp\/v2\/comments?post=396"}],"version-history":[{"count":2,"href":"https:\/\/hongkongmerchant.com\/index.php\/wp-json\/wp\/v2\/posts\/396\/revisions"}],"predecessor-version":[{"id":399,"href":"https:\/\/hongkongmerchant.com\/index.php\/wp-json\/wp\/v2\/posts\/396\/revisions\/399"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hongkongmerchant.com\/index.php\/wp-json\/wp\/v2\/media\/398"}],"wp:attachment":[{"href":"https:\/\/hongkongmerchant.com\/index.php\/wp-json\/wp\/v2\/media?parent=396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hongkongmerchant.com\/index.php\/wp-json\/wp\/v2\/categories?post=396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hongkongmerchant.com\/index.php\/wp-json\/wp\/v2\/tags?post=396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}