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Rohan Havelock is investigating how New Zealand's earthquake insurance stacks up against Japan's
Shortly after Associate Professor Rohan Havelock arrived in Japan to study its earthquake insurance system, a 7.6-magnitude earthquake damaged nearly 4,000 homes and buildings in Aomori Prefecture.
For the University of Auckland insurance law specialist, it was a reminder of the value of an insurance system that works for homeowners.
New Zealand's earthquake insurance combines private insurance with government-provided statutory cover. Statutory insurance, says Havelock, pays first, up to a set limit for residential buildings and land, and private insurance typically covers additional building damage only.
After the Canterbury earthquakes, more than 460,000 claims were lodged with the former Earthquake Commission, far exceeding its capacity. Slow claims processing, significant litigation, and the insolvency of two insurers followed. Some claims remained unresolved after a decade.
New Zealand's subsequent reforms included the Natural Hazards Insurance Act 2023 and the Contracts of Insurance Act 2024, but the dual system continues and Havelock believes similar problems are likely to occur after the next big quake.
“There's a need for more carefully considered reform, especially relating to standard terms, handling of claims and dispute resolution.”
What can New Zealand learn from Japan?
Havelock says New Zealand could follow Japan's lead in three ways:
First, Japan's earthquake premiums are priced to match risk: they're based on a building's location, age, construction and earthquake strength. In New Zealand, Natural Hazards Insurance is funded through a flat levy: 16c for every $100 of insured building value.
“This means that owners of more risky homes are subsidised by owners of less risky homes, and also that there's no incentive to strengthen homes against earthquakes, or for owners to move away from earthquake-prone areas,” he says.
Second, Japan's earthquake insurance is based not on quantifying actual loss, which can be resource-intensive and time-consuming, but on classifying loss into four types: total loss, large half loss, small half loss, or partial loss.
Settlement is invariably by payment (instead of the insurer undertaking repairs or reinstatement), which Havelock says means assessment and claims settlement is rapid and there are fewer disputes over what is necessary.
Third, he says Japan's dispute resolution process is notably efficient and arguably more claimant friendly.
“Insurers routinely offer re-inspection or review of decisions, which resolves a large proportion of disputes.”
If disagreement continues, Havelock says the main pathway is through the 'Financial Alternative Dispute Resolution' system, involving an experienced mediator. This is non-adversarial and is free of filing or hearing fees, says Havelock. “Very few disputes proceed to litigation.”
Covering period of Monday 16th – Tuesday 17th of February
A deluge of rain and relentless winds continue to impact a vast area across the central and eastern North Island and northeastern South Island today (Monday), with large waves affecting the southern and eastern coasts of the North Island. Eyes gradually turn towards the South Island through the day as the moisture-rich low tracks southwards. Heavy Rain is expected to continue through into Tuesday for the eastern South Island.
What happened overnight Sunday (15th of Feb) into Monday (16th of Feb)?
The tables below show some rainfall accumulations and gust speeds from last night.
– Gisborne, Taupō, Waiouru, Wellington, Whanganui and Kaikōura have already exceeded the amount of rainfall they would typically expect to receive in February.
– Baring Head Wave Buoy in Wellington Harbour recorded a Significant Wave Height of 7.54 metres at 11:06 pm (Sun). Note, Significant Wave Height is the average height of the highest one-third of waves.
– Mt Kaukau and Wellington Airport measured their strongest winds since June 2013 when they reached 202 km/h and 143 km/h respectively.
– The Kelburn weather station recorded its strongest winds from a southerly direction since June 2013 when a southerly wind of 141 km/h was measured.
What is expected over the next 24 hours?
Heavy Rain and Strong Winds are expected to ease in the central North Island through this (Monday) afternoon and the lower North Island and northeastern South Island this evening. The focus of Heavy Rain moves southwards and is forecast to continue to affect the Canterbury Plains and Banks Peninsula, as well as Dunedin into Tuesday and Warnings and Watches are place.
MetService meteorologist Alanna Burrows says, ‘Please stay alert and keep up to date with the latest warnings in your area at metservice.com/warnings as well as advice from the Civil Defence and other local agencies.’
For media enquiries or to arrange an interview with one of our meteorologists please call 04 4700 848 or email metcomms@metservice.com
Understanding MetService Severe Weather Warning System
Severe Thunderstorm Warnings (Localised Red Warning) – take cover now:
This warning is a red warning for a localised area.
When extremely severe weather is occurring or will do within the hour.
Severe thunderstorms have the ability to have significant impacts for an area indicated in the warning.
In the event of a Severe Thunderstorm Red Warning: Act now!
Red Warnings are about taking immediate action:
When extremely severe weather is imminent or is occurring
Issued when an event is expected to be among the worst that we get – it will have significant impact and it is possible that a lot of people will be affected
In the event of a Red Warning: Act now!
Orange Warnings are about taking action:
When severe weather is imminent or is occurring
Typically issued 1 – 3 days in advance of potential severe weather
In the event of an Orange Warning: Take action.
Thunderstorm Watch means thunderstorms are possible, be alert and consider action
Show the area that thunderstorms are most likely to occur during the validity period.
Although thunderstorms are often localised, the whole area is on watch as it is difficult to know exactly where the severe thunderstorm will occur within the mapped area.
During a thunderstorm Watch: Stay alert and take action if necessary.
Watches are about being alert:
When severe weather is possible, but not sufficiently imminent or certain for a warning to be issued
Typically issued 1 – 3 days in advance of potential severe weather.
During a Watch: Stay alert
Outlooks are about looking ahead:
To provide advanced information on possible future Watches and/or Warnings
Issued routinely once or twice a day
Recommendation: Plan.
Source: ASB
With severe weather affecting regions across North Island, ASB is offering support options for customers who are impacted by the weather and worried about finances.
Targeted support for personal, farming and business customers affected by the extreme weather will be offered on a case-by-case basis, with options including:
ASB Executive General Manager for Personal Banking Adam Boyd says ASB wants to hear from any affected customers needing financial assistance or extra support.
“We recognise this will be a challenging time for some communities. Any personal, business or farming customers who are worried about their finances following the severe weather are encouraged to get in touch. Our teams have practical options available and are here to help.”
ASB’s branches in Masterton and North City are closed today. Lambton Quay is open with reduced staff. All other ASB branches remain open, and customers are advised to check ASB’s branch locator tool for their nearest branch and opening hours.
To discuss support options, personal customers should call ASB's contact centre on 0800 803 804. Alternatively, customers can email hardship@asb.co.nz. Affected ASB business and rural customers should speak to their relationship manager or call 0800 272 287.
Further detail on ASB’s extreme weather support is available here: https://www.asb.co.nz/page/extreme-weather-support.html
More information and full terms, fees and charges can be found on ASB's website.
Riddet Institute Fellow Laureate Paul Moughan has led a research collaboration with Yili’s Innovation Centre in New Zealand which will help shape World Health Organisation policy on infant nutrition.
Distinguished Professor Moughan, who chaired the Food and Agriculture Organisation (FAO) of the United Nations' expert consultation which published guidelines on protein quality for humans in 2013, has been working closely with global experts in a joint research effort co-ordinated by the Yili Innovation Centre Oceania (YICO) at Lincoln University.
In a series of papers published in the Journal of Nutrition (2023), Frontiers in Nutrition (2024) and the Journal of Agricultural and Food Chemistry (2025), the work of Professor Moughan and his team has led to breakthrough research that provides a better understanding and far more accurate way of assessing how well babies can absorb and utilise the essential building blocks of protein from breastmilk.
Professor Moughan’s original work in 2013 provided the gold standard for evaluating protein quality in infant formula: the Digestible Indispensable Amino Acid Score (DIAAS).
His latest research with YICO, the Yili Global Maternal and Infant Nutrition Institute and Professor Yin Yulong, a Fellow of the Chinese Academy of Engineering at the Institute of Subtropical Agriculture, Chinese Academy of Sciences, has produced new data which deepens this understanding further and has already led to new approaches to infant nutrition production within Yili.
“This has been a hugely productive international research alliance and will no doubt lead to further advances in FAO policy,’’ Professor Moughan said.
“Professor Yin is a digestive physiologist of significant international standing and his thoroughness, attention to detail and scientific leadership was crucial to the success of the collaboration.
“The alliance’s work will also lead to global impacts on the production of infant formula leading to improvements in the long-term health of babies and children.
“It has also been very enjoyable working with the scientific team within Yili. I have been very impressed by the technical capabilities of the team and working with them has actually been quite delightful.’’
Head of YICO, Dr Philip Wescombe, said the Yili Innovation Centre Oceania principal aim was to act as a hub for research collaboration across Oceania.
“After 10 years, we are now well-established in driving innovation by strengthening ties with startups, expanding business opportunities, and fostering greater interaction between researchers, industry, and consumers,’’ Dr Wescombe said.
Resident Director of Yili Group Oceania Region, Zhiqiang Li, said Yili was proud of the work of YICO and of Yili’s teams across Oceania and in Inner Mongolia.
“We are honoured to learn of the warm and respectful relationships the company’s internal technical staff have developed with leading global researchers in China and New Zealand, the support we can provide as Asia’s largest dairy producer, and the fifth largest dairy company in the world,’’ Mr Li said.
References
Hodgkinson, S. M., Xiong, X., Yan, Y., Wu, Y., Szeto, I. M.-Y., Li, R., Wescombe, P., Duan, S., Liu, H., Yin, Y., Lim, W. X. J., & Moughan, P. J. (2023). An accurate estimate of the amino acid content of human milk collected from Chinese women adjusted for differences in amino acid digestibility. The Journal of Nutrition, 153, 3439–3447. https://doi.org/10.1016/j.tjnut.2023.10.009
Moughan, P. J., Deglaire, A., Yan, Y., Wescombe, P., Lim, W. X. J., Stroebinger, N., Duan, S., Szeto, I. M.-Y., & Hodgkinson, S. (2024). Amino acid requirements of the infant: The amino acid composition of human breast milk. Frontiers in Nutrition, 11, 1446565. https://doi.org/10.3389/fnut.2024.1446565
Wu, Y., Yan, Y., Xiong, X., Li, R., Duan, S., Tang, M., Szeto, I. M.-Y., Liu, H., Hodgkinson, S. M., Moughan, P. J., Wescombe, P., Wang, J., & Yin, Y. (2025). Effect of different ratios of αlactalbumin to βcasein in infant formula on true ileal digestibility and intestinal morphology of suckling piglets. Journal of Agricultural and Food Chemistry, 73, 6144–6150. https://doi.org/10.1021/acs.jafc.4c10520
As a fast-track consent is sought for a major gold mine in Central Otago and another has already been granted in Coromandel, Zero Waste Aotearoa is calling upon the government to mine electronic waste, not beautiful landscapes, for gold and other precious metals.
E-waste contains a significant concentration of gold, with one metric tonne of electronic waste containing up to 800 times more gold than a tonne of mined ore. While precious metals (including gold, silver, copper) make up approximately 60% of the composition of some e-waste, gold specifically is highly concentrated, with a single tonne of circuit boards containing roughly 39 grams of gold.
New Zealand currently generates 99,000 tonnes of e-waste every single year. Approximately 98 percent ends up in landfill or is disposed of illegally, according to the Ministry for the Environment.
“At present the voluntary product stewardship scheme means that we have one of the lowest rates of e-waste recovery in the world. We are literally throwing gold away into landfills while proposing to dig it up elsewhere in some of the country's most beautiful landscapes. It is the height of madness,” says Sue Coutts of Zero Waste Aotearoa.
“Like many people across the country, we are gravely concerned about the environmental impact of gold mining. We think that there are much better ways to get these valuable resources – and ensure that they stay in circulation forever, not dumped in landfills.”
“The World Gold Council says that only 7% of gold is used in tech but 27% of worldwide gold production is already from recycling. This is more than 4 times what we need for tech – there is no valid reason to dig up any more of our precious ecosystems.”
“Product stewardship would create a pathway for a new industry: one built on resource recovery of valuable materials and a circular economy.”
NZ company MINT Innovation relocated to Sydney because they could tap into flows of e-waste from extended producer responsibility schemes that collect electronic waste in Australia.
They chose not to invest in NZ because there is no regulated e-waste scheme here. That's $60m in turnover that will be dropping into the Australian economy every year instead of ours.
E-waste was declared a priority product in June 2020 requiring the establishment of a regulated product stewardship scheme under the Waste Minimisation Act. Yet six years on, a mandatory scheme is not in place and no further work is being done.