Welcome to the winter edition

There will be some who fall into the high-risk category who wish to remain and repair or rebuild due to financial pressures or a strong connection to or history with the property. Alternatively, there may be others who will want to be moved out but fall into the lower or managed risk categories where remediation is considered sufficient.

There also remains the crucial need for central government and councils to ensure that lessons are learned. Most builds rely on investment to fund them which in turn requires insurance to be in place.

As we have been saying for some time, future consents need to be issued for appropriate use and structures when considering risks and improvements the land is subject to as well as previous experience and future expectations.

In the lead up to the new financial advice regime coming fully into force in March this year, IBANZ revamped its professional status levels available to its members and the evaluation criteria which includes qualifications, experience and an ongoing commitment to continuing professional development.

May has seen a continuation of this year’s wet and wild weather for many communities. It was also the month in which Cyclone Recovery Minister Hon Grant Robertson announced the three categories (summarised below) under which impacted properties will be assessed in terms of future weather-related risk:

Low Risk – repair to previous state is all that is required to manage future severe weather event risk. This means that once any flood protection near the property is repaired, the home can be rebuilt at the same site.

Managed Risk – community or property-level interventions will manage future severe weather event risk. This could include the raising of nearby stop banks, improving drainage or raising the property.

High Risk – areas in the high risk category are not safe to live in because of the unacceptable risk of future flooding and loss of life. Homes in these areas should not be rebuilt on their current sites.

Communities will be consulted as part of the review before any final decisions about the categories of properties are made. Those in the low risk category in Hawkes Bay have been told to expect local engagement by the end of May. Engagement with individuals and communities in the managed and high risk categories is set to begin early June.

If previous experience with these types of consultations and issues is any indication, it will be impossible to meet the expectations of everyone affected.

In our lead story, we explore these evolved professional status levels, the role of a broker and expectations that their clients should have of the service and advice a broker provides.

To support the new financial advice regime, we have included the need for those who hold an IBANZ professional status and provide financial advice to clients to undertake at least one hour of conduct and ethics focussed professional development annually.

There are four different statuses available for various roles and responsibilities from those in administration, claims and support to brokers including chartered statuses for those who can demonstrate leadership activities.

We also highlight the importance of building long term, professional client/broker relationships. Trust, tailored advice and acting in the clients’ bests interests are critical factors in navigating the increasingly complex world of insurance, particularly given the ongoing challenges presented by the weather and the economic cycle.

While many will not be looking forward to the colder than usual temperatures forecasters seem to be promising this winter, let us hope the weather provides the predicted respite from the rain.

Keep safe.

Melanie Gorham CEO, IBANZ

Features

16.

22. NZ government delivers extra $25 million to cyclone-affected businesses

29. Opinion

How the courts interpret insurance policies

8. Floods, landslips, cyclones and locusts!

18. Summer of storms causes 402% spike in insurance claims

24. One-third of summer weather claims settled by April

30. Why young people should choose broking

42. Survey reveals 31% of New Zealanders don’t know insurance coverage details

12. Summer weather damage bill more than $9 billion: Treasury

20. Suncorp introduces new leave for gender affirmation

26. Court of Appeal rules on exclusion for losses caused by "pollution or contamination"

32. 2022's most stolen cars as theft claims soar by 43%

CoverNote is the official publication of IBANZ and is distributed FREE on a quarterly basis (March, June, September, December) to members throughout New Zealand and associated companies. Additional copies are available at a cost of $7.50 per copy, or 12 month (4 issues) subscriptions at $30.00, inclusive of postage and packaging. The articles or opinions featured within this magazine are not necessarily the opinions of the publishers or IBANZ, and they do not accept responsibility for the content of articles featured within the publication. No part of this publication may be reproduced without the written permission of the publisher. The publishers do not accept responsibility for loss or damage to unsolicited photographs or manuscripts.

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