The Funding and Risk Management Statement

The Government’s Funding and Risk Management Statement (FRMS) is a key part of the financial governance of the Natural Hazards Insurance Scheme, and sets out how the costs and risks of the scheme are shared between the Crown and the levy payers.

The Statement provides estimates of the cost of providing the scheme’s natural hazards cover, projections of the amount in the Natural Hazard Fund, and sets out key information about how the government has determined the levy and financial settings, including policy considerations.

This first Funding and Risk Management Statement was released 1 July 2024. The Natural Hazards Insurance Act 2023 introduces the requirement for the Government to regularly review the financial settings and levy settings, and for the development of a Funding and Risk Management Statement at least every five years.

The Treasury leads this work, with risk modelling advice from NHC Toka Tū Ake on the likely cost of providing natural hazard insurance now and over the coming years. This cost is influenced by our evolving understanding of the risks we cover as well as changing costs.

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