1 00:00:01,600 --> 00:00:04,040 Speaker 1: The only drive show. You can try the truck to 2 00:00:04,080 --> 00:00:06,800 Speaker 1: ask the question, which we get the answers, find the 3 00:00:06,880 --> 00:00:11,360 Speaker 1: fag sack and give the analysis. Hither duplic elan drive 4 00:00:11,760 --> 00:00:15,000 Speaker 1: with one New Zealand and the power of satellite Mobile 5 00:00:15,200 --> 00:00:17,680 Speaker 1: newsorgs V Afternoon. 6 00:00:17,720 --> 00:00:20,000 Speaker 2: So we've been warned about it and now it has happened. 7 00:00:20,120 --> 00:00:23,960 Speaker 2: AA Insurance has stopped offering new home policies in Westport 8 00:00:24,000 --> 00:00:26,160 Speaker 2: because of the elevated risk of flooding in the area. 9 00:00:26,440 --> 00:00:29,240 Speaker 2: Existing policies will continue and they can be transferred of 10 00:00:29,280 --> 00:00:32,120 Speaker 2: the house as sold. Jonathan Boston is a Victoria University 11 00:00:32,159 --> 00:00:35,559 Speaker 2: emeritus professor and he joins me now Hi Jonathan Hi. 12 00:00:35,680 --> 00:00:38,159 Speaker 2: Heather the insurance company says, this is just temporary. Do 13 00:00:38,159 --> 00:00:39,040 Speaker 2: you think it's temporary? 14 00:00:40,680 --> 00:00:43,199 Speaker 3: Well, we'll have to wait and see. They're saying that 15 00:00:43,240 --> 00:00:45,520 Speaker 3: they will need to review things in the light of 16 00:00:46,320 --> 00:00:50,960 Speaker 3: the particular defensive structures that are going to be built 17 00:00:51,000 --> 00:00:54,520 Speaker 3: over the next few years to provide additional protection to 18 00:00:54,640 --> 00:00:59,600 Speaker 3: Westport and therefore presumably reduce the flood risk. But they 19 00:00:59,640 --> 00:01:06,720 Speaker 3: haven't guaranteed that they will resume providing new insurance cover 20 00:01:07,400 --> 00:01:10,560 Speaker 3: and what is more, they haven't indicated what they'll be 21 00:01:10,640 --> 00:01:17,240 Speaker 3: charging to provide existing customers with insurance covers. 22 00:01:17,440 --> 00:01:20,120 Speaker 2: Are you suggesting that they may in fact continue the 23 00:01:20,120 --> 00:01:22,320 Speaker 2: existing policies but price them so high no one can 24 00:01:22,360 --> 00:01:24,160 Speaker 2: afford them. 25 00:01:24,800 --> 00:01:29,520 Speaker 3: Well, it's a question that AI Insurance needs to be asked. 26 00:01:30,000 --> 00:01:34,679 Speaker 3: I would anticipate, given the risks that they have ascertained 27 00:01:35,400 --> 00:01:40,160 Speaker 3: exist in Westport, based on obviously very good evidence from 28 00:01:40,160 --> 00:01:48,040 Speaker 3: a range of sources, that there are significant risks facing 29 00:01:48,160 --> 00:01:53,960 Speaker 3: existing properties, let alone new ones, and that therefore those 30 00:01:54,040 --> 00:01:58,000 Speaker 3: risks would need to be priced appropriately. And I would 31 00:01:58,000 --> 00:02:02,480 Speaker 3: have visaged that would some increase exactly how much. I've 32 00:02:02,560 --> 00:02:03,400 Speaker 3: no idea. 33 00:02:03,480 --> 00:02:05,400 Speaker 2: Do you think, Jonathan, that this is just the start. 34 00:02:05,440 --> 00:02:08,240 Speaker 2: Westport's the first place. Houses around the country and other 35 00:02:08,280 --> 00:02:09,919 Speaker 2: parts of the country may in fact be the next. 36 00:02:11,200 --> 00:02:14,320 Speaker 3: Well, we need to understand Westport isn't first, and what 37 00:02:14,360 --> 00:02:17,600 Speaker 3: we're talking about at the moment is partial retreat in Westport. 38 00:02:19,720 --> 00:02:23,680 Speaker 3: In the wake of the big North Island severe weather 39 00:02:23,720 --> 00:02:28,480 Speaker 3: events two years ago, the insurance industry made it clear 40 00:02:28,840 --> 00:02:32,480 Speaker 3: to owners of Category three properties those are the ones 41 00:02:32,480 --> 00:02:36,000 Speaker 3: that would deem to be too risky to be rebuilt 42 00:02:36,240 --> 00:02:39,960 Speaker 3: and lived in. The insurance company has made it clear 43 00:02:40,040 --> 00:02:43,640 Speaker 3: that if people refuse to accept the buyout offers from 44 00:02:43,680 --> 00:02:47,760 Speaker 3: local government, they would not provide insurance cover. So we 45 00:02:47,880 --> 00:02:54,120 Speaker 3: already have in recent years now probably several thousand cases 46 00:02:54,160 --> 00:02:59,120 Speaker 3: of where insurers have indicated that they would pull out completely. 47 00:02:59,200 --> 00:03:04,880 Speaker 3: So Westport is not new, it's another example. It's significant 48 00:03:04,880 --> 00:03:08,560 Speaker 3: in the sense that it's one of the first times 49 00:03:08,560 --> 00:03:16,280 Speaker 3: insurers have, outside the context of an immediate disaster, indicated 50 00:03:16,280 --> 00:03:19,080 Speaker 3: that they're going to pull back their insurance cover to 51 00:03:19,080 --> 00:03:23,600 Speaker 3: some extent. Almost certainly, how we will witness more cases 52 00:03:23,639 --> 00:03:26,880 Speaker 3: like this because obviously we are a period of climate 53 00:03:26,960 --> 00:03:31,680 Speaker 3: intensified risk. Those risks are going to grow. Sea level 54 00:03:31,760 --> 00:03:37,040 Speaker 3: rise will intensify flood risk for many communities up and 55 00:03:37,080 --> 00:03:41,720 Speaker 3: down the country, and indeed, in the longer term, we 56 00:03:41,840 --> 00:03:46,720 Speaker 3: will need to move significant numbers of people and property 57 00:03:46,760 --> 00:03:50,680 Speaker 3: out of harm's way as a result of the impacts 58 00:03:50,680 --> 00:03:51,880 Speaker 3: of climate change. 59 00:03:52,640 --> 00:03:55,320 Speaker 2: Jonathan, thank you for your time. Has always appreciated. Jonathan Boston, 60 00:03:55,400 --> 00:03:57,120 Speaker 2: Victoria University Emeritus Professor. 61 00:03:57,800 --> 00:04:00,960 Speaker 1: For more from Hither Duplessye, Alan Drye, listen live to 62 00:04:01,040 --> 00:04:04,080 Speaker 1: News Talks it B from four pm weekdays, or follow 63 00:04:04,120 --> 00:04:05,840 Speaker 1: the podcast on iHeartRadio.