New Zealand’s Natural Hazards Commission Toka Tū Ake (NHC), formerly known as New Zealand’s Earthquake Commission (EQC) Toka Tū 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.The organisation has been growing New Zealand’s disaster reinsurance protection over recent years, from a , to $7.2 billion for 2022, to , and then $9.2 billion in 2024.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.Of course, the NHC also made its debut into the catastrophe bond market in 2023 and that NZ $225 million  catastrophe bond is still in-force and part of the reinsurance tower this year.

NHC Chief Executive Tina Mitchell, commented: “One way we ensure there is funding available to pay claims for natural hazards damage is by purchasing reinsurance – insurance for insurers.” She continued: “All 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.“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.” , so slightly lower down.

Mitchell also added: “The 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.” “International markets also value the scheme’s commitment to community resilience,” she says.

“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.” The 2025 renewal highlights the continued confidence international markets have in New Zealand’s disaster risk framework, the credibility of the NHC, and the growing importance of diversified capital in supporting national resilience.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’s 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.

“We can’t change the natural hazards we live with, but we can be prepared,” Mitchell said.“Ensuring we have access to the right financial support provides peace of mind for New Zealand homeowners.” .All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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