00:00:00
Speaker 1: You're listening to a Sharesies podcast.
00:00:04
Speaker 2: Something I read from the Climate Change Commission, they said 15 years ago, damaging storm events once a month, now more like once a week. Is that what you're seeing kind of coming on the radar?
00:00:12
Speaker 1: Well, that's what we've seen in the last 12 months for sure. I don't think it's quite once a week, but give or take. But if you look back though, the year or two before that, it was quite benign. And then you had 2023, which was the opposite of benign. So I think What we are absolutely seeing, though, in our data is that our five-year average storm event costs are higher than our 10-year average, which is higher than our 15-year average. So there absolutely is that trend happening. And that trend is happening globally as well.
00:00:43
Speaker 2: So I guess how much effort are you putting into trying to get ahead of that or predict that? Or is it just a case of dealing with it as it comes through and then pricing accordingly?
00:00:54
Speaker 1: No, so that's why we started on this risk-based pricing track a couple of years ago. And that's also why last year we introduced Landslip and C-Surge as two more components of our risk-based pricing model to be able to consider wider effects of weather and climate.
00:01:13
Speaker 2: Were they not really covered before or considered?
00:01:16
Speaker 1: Not in the same granular approach that we've done them, that we've introduced in the same way.
00:01:22
Speaker 2: Yeah, right. I mean, is it landing everywhere? Or are there specific parts of New Zealand where you're seeing a higher degree of risk there?
00:01:29
Speaker 1: Every property, as I said, in New Zealand has a different risk profile. And so it's not about whole areas because you can get some properties in that that will be low risk. Obviously, you will get, if you have a whole lot of homes that are in the same area, right next to a river that floods every day, then all of those will have a similar risk profile. But the ones one street back from them probably won't. And so it's not about whole areas and that's why we think it's really important and fairer to do it at a specific location level. Investing involves risk. You might lose the money you start with. We recommend talking to a licensed financial advisor. We also recommend reading product disclosure documents before deciding to invest.
Speaker 1: You're listening to a Sharesies podcast.
00:00:04
Speaker 2: Something I read from the Climate Change Commission, they said 15 years ago, damaging storm events once a month, now more like once a week. Is that what you're seeing kind of coming on the radar?
00:00:12
Speaker 1: Well, that's what we've seen in the last 12 months for sure. I don't think it's quite once a week, but give or take. But if you look back though, the year or two before that, it was quite benign. And then you had 2023, which was the opposite of benign. So I think What we are absolutely seeing, though, in our data is that our five-year average storm event costs are higher than our 10-year average, which is higher than our 15-year average. So there absolutely is that trend happening. And that trend is happening globally as well.
00:00:43
Speaker 2: So I guess how much effort are you putting into trying to get ahead of that or predict that? Or is it just a case of dealing with it as it comes through and then pricing accordingly?
00:00:54
Speaker 1: No, so that's why we started on this risk-based pricing track a couple of years ago. And that's also why last year we introduced Landslip and C-Surge as two more components of our risk-based pricing model to be able to consider wider effects of weather and climate.
00:01:13
Speaker 2: Were they not really covered before or considered?
00:01:16
Speaker 1: Not in the same granular approach that we've done them, that we've introduced in the same way.
00:01:22
Speaker 2: Yeah, right. I mean, is it landing everywhere? Or are there specific parts of New Zealand where you're seeing a higher degree of risk there?
00:01:29
Speaker 1: Every property, as I said, in New Zealand has a different risk profile. And so it's not about whole areas because you can get some properties in that that will be low risk. Obviously, you will get, if you have a whole lot of homes that are in the same area, right next to a river that floods every day, then all of those will have a similar risk profile. But the ones one street back from them probably won't. And so it's not about whole areas and that's why we think it's really important and fairer to do it at a specific location level. Investing involves risk. You might lose the money you start with. We recommend talking to a licensed financial advisor. We also recommend reading product disclosure documents before deciding to invest.
