Tower welcomes NZ mandatory climate risk reporting

Tower welcomes NZ mandatory climate risk reporting | Insurance Business

Tower welcomes NZ mandatory climate risk reporting

Tower Insurance has expressed support for the New Zealand government’s mandatory reporting of climate-related financial disclosures.

The company said in a statement that it is looking to develop its reporting criteria to introduce this type of disclosure ahead of the 2023 timetable set by the government.

“As a Kiwi insurer, we are acutely aware of the climate risks faced by New Zealand and it is our role to help mitigate and prepare for things like rising temperatures, changing sea levels, increased chances of flooding and more volatile weather patterns,” said Tower Insurance CEO Blair Turnbull (pictured).

According to Turnbull, insurers around the world are beginning to implement risk-based pricing for climate change, and the same is likely to happen in New Zealand as climate change impacts increase in the future.

“We believe that risk-based pricing is a fairer way to price insurance,” he said. “It helps to educate customers, communities and other stakeholders about risk and encourages action to help mitigate and reduce the impacts of earthquake, climate change and other natural disasters.

“Mandatory reporting requirements will help increase transparency around what actions are being taken by businesses to prepare for these risks and increase the resilience of our communities and the economy.”