New evidence from the Natural Hazards Commission – Toka Tū Ake (NHC) shows that landslides are now New Zealand’s most costly natural hazard.
New Zealand is a country that is prone to a range of natural hazards. Located on a series of major fault systems, earthquakes cause high levels of loss. The country is also volcanically active, with occasional tragedies. Heavy rainfall brings floods.
To share the cost of these perils, following the 1942 Wairarapa earthquakes, the New Zealand government established the Earthquake Commission (EQC) in 1945, initially focusing on earthquakes and war damage, but subsquently expanded to cover other natural hazards.
In the subsequent years, the EQC has evolved into the Natural Hazards Commission – Toka Tū Ake (NHC), with a purpose “to reduce the impact of natural hazards on people, property, and the community”. Essentially it operates as a financial pool, with home owners paying a levy on top of their insurance to generate the fund. In the event of a loss, the fund pays for the rebuild costs up to a cap (currently NZ$300,000); the remainder is then covered by the property’s insurance. Claims are funded directly from the pool, with reinsurance cover and ultimately a government guarantee in place to ensure that there are sufficient funds.
In reality, NHC does much more than this, acting to manage and settle claims, and to understand the range of hazards to which New Zealand is prone.
In the last few days, a range of media outlets in New Zealand have been reporting new data from NHC about losses from natural hazards in New Zealand. This is the headline from 1News:
“Landslides are New Zealand’s most expensive natural hazard – and new data reveals a sharp rise in damage claims and growing risks to homes, infrastructure and communities.”
In total, since 2021 NHC has received 13,000 landslide claims and has paid out NZ$322 million (US$191 million). New Zealand is seeing an abrupt increase in landslide losses, driven primarily by increasingly frequent high magnitude rainfall events. NHC is urging property owners to undertake preventative maintenance and to be aware of the limitations of EQC cover.
In common with many other places, these landslide hazards represent a major challenge to New Zealand. The landscape has many dormant landslides that are being reactivated by these increased rainfall events, and many new failures are also occurring. But, generating reliable risk maps for landslides remains a major challenge. This needs to be a major research focus in the coming years. It will require better understanding of triggering events (rainfall and earthquakes primarily); of the initiation processes within the slope; of runout / debris mobility; and of vulnerability and consequent losses. It is probably true to say that in all of these areas, landslide research lags behind that of earthquakes and floods, primarily because of a lack of long term investment.
In many countries, landslides are not an insured risk for this reason. On its own, this will be a major challenge that must be addressed. For those countries in which landslides are insured, we need quickly to get up to speed.