Landslides Now NZ’s Costliest Natural Hazard, Data Shows Rising Costs and Risks

New evidence from the Natural Hazards Commission – Toka Tū Ake (NHC) confirms that landslides are now New Zealand’s most costly natural hazard, surpassing earthquakes and other perils. The country, situated on major fault systems and prone to volcanic activity and floods, has long relied on a public insurance model to manage disaster risks.

Following the 1942 Wairarapa earthquakes, the New Zealand government established the Earthquake Commission (EQC) in 1945 to cover earthquake and war damage. Over time, the EQC expanded its mandate to include other natural hazards, evolving into today’s NHC. Its mission is to reduce the impact of natural hazards on people, property, and communities.

The NHC operates as a financial pool, funded by levies paid by homeowners on top of their insurance premiums. In the event of a covered loss, the fund covers rebuild costs up to a cap of NZ$300,000. Any amount exceeding this is the responsibility of the property’s private insurance. Claims are paid directly from the pool, backed by reinsurance and a government guarantee to ensure solvency.

Beyond claims management, the NHC plays a broader role in assessing and mitigating risks across New Zealand’s diverse hazard landscape. Recent data highlights a sharp increase in landslide-related losses, driven by more frequent and intense rainfall events. These events are reactivating dormant landslides and triggering new failures, posing growing threats to homes, infrastructure, and communities.

Since 2021, the NHC has received 13,000 landslide claims and paid out NZ$322 million (US$191 million) in damages. Media reports, including coverage from 1News, emphasize the urgency of addressing this escalating risk. The NHC is urging property owners to take preventative measures and to understand the limitations of EQC coverage.

Landslide hazards are a persistent challenge in New Zealand, where the terrain is marked by many dormant landslides that become active during heavy rainfall. However, creating accurate risk maps remains difficult due to gaps in understanding key factors such as:

• Triggering events (primarily rainfall and earthquakes);
• Slope initiation processes;
• Debris mobility and runout patterns;
• Vulnerability and associated losses.

Research in these areas lags behind studies on earthquakes and floods, largely due to insufficient long-term investment. In many countries, this lack of data contributes to landslides being excluded from insurance coverage altogether.