Tower Insurance CEO says no more homes should be built on cliffs or in flood plains following devastating weather events. Manufacturer Skellerup reveals record earnings amid a global slowdown. Video / NZ Herald
No more homes should be built on coastlines or in low-lying flood risk areas after the devastating damage caused by Cyclone Gabrielle and the Auckland floods, the chief executive of Tower Insurance says.
Blair Turnbull told Markets with Madison it was time for councils to have a tough conversation aboutmanaged retreat now.
“We need to stop building in areas that are prone to floods and coastal erosion.”
He said it was inevitable that home insurance premiums would rise following the events, which Tower had already estimated would cost between $95 million and $125m at a minimum.
Tower had so far received about 6000 claims for both weather events and expected to receive hundreds more.
Auckland clifftop homes are in precarious positions following the floods. Photo / Brett Phibbs
Separately, in the thick of New Zealand’s company reporting season, the component manufacturer Skellerup reported record earnings of $33.5m for the six months to December.
However, chief executive David Mair said it was seeing signs of recession offshore, which could affect the bulk of its revenue, as demand for some of its products in the United States fell.
He explained how the company would keep its margins strong on Markets with Madison.
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