New Zealand insurer Tower’s retiring chair Michael Stiassny has flagged the “chilling reality” of climate change in his final speech to shareholders, arguing a series of wake-up calls have not led to meaningful mitigation.

Mr Stiassny, who has been chair since 2013, says while some progress has been made in addressing the growing impact of natural disasters, action has been “haphazard, inadequate and painfully slow”.

“Look back three years to the devastation wrought by Cyclone Gabrielle and the Auckland floods,” he said at last week’s annual shareholder meeting, “can we honestly say that in the intervening period we have seen decisive action that will prevent loss of life?

“Are we confident that we are no longer building on floodplains or on vulnerable coastlines nationwide?

“Are we confident that we have active flood prevention measures in place that will protect against more frequent and severe rain events? Are we confident that our infrastructure is resilient and will cope with large storms that are no longer anomalies?  

“The answer is a resounding no.”

Mr Stiassny says the insurer is co-operating with the government’s insurance affordability review, but points out Tower’s home and motor premiums are currently falling.

“In short, premiums have not climbed as much as some ministers have said. The real issue when it comes to insurance affordability is the cost of living more generally for Kiwis.

“And let’s not forget Fire and Emergency New Zealand and natural hazards insurance levies make up roughly 40% to 43% of insurance premiums, over which we have no control.”

Experienced financial services leader Naomi Ballantyne has been elected Mr Stiassny’s replacement as chair.

Tower says Ms Ballantyne, who founded Partners Life in 2010, has more than 40 years’ experience in insurance. She is currently MD of KNK Consulting, chair of financial advice business TAP Group and director of Dai-ichi Life Asia-Pacific.

She joined the Tower board in May last year to fill a casual vacancy and was re-elected at today’s meeting.

“It is an honour to be elected chair of Tower, a company with strong momentum, a clear purpose and a talented team focused on delivering for customers across New Zealand and the Pacific,” she said.

“On behalf of the Tower board, I would like to thank Michael for his significant contribution to Tower’s future.”