There are expectations the Government continuing to step in to cover natural hazard costs for homeowners could create a moral hazard.
An independent climate adaptation report reveals annual losses from weather-related events over the next 25 years could increase by a quarter.
It warns the later we respond, the more disruptive the adjustment will be.
Chair Matt Whineray told Heather du Plessis-Allan the best way forward is for people to understand what they can get and for the Government to move away from buyouts.
He says this needs to be done over a period of time so the market has time to adjust and so people have fair warning and an opportunity to respond.
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