The EM-DAT disaster database, crucial for tracking the impact of global disasters, was offline for a week last month due to abrupt cuts in USAID funding. This disruption exposed the dangers of relying on external data sources for essential disaster information.
The issue is not theoretical in New Zealand. Cyclone Gabrielle and the Auckland floods of 2023 caused catastrophic damage, but no national dataset is available to fully assess the extent of these losses.
A Fragile System Exposed
EM-DAT, a key global database for tracking disasters and their financial and human toll, went offline for a week due to abrupt cuts to USAID funding. This disruption highlighted the risk of depending on external sources for crucial data.
According to CTU Economist Craig Renney, “How can we talk about disaster risk management and risk reduction when we have no idea what is going on?”
The country’s most devastating weather events in modern history—Cyclone Gabrielle and the Auckland floods of 2023—caused extensive damage, yet no comprehensive national dataset exists to capture the full extent of these losses.
An Incomplete Picture of Disaster Losses
New Zealand currently turns to the Insurance Council of New Zealand (ICNZ) and EM-DAT for disaster loss data, but both sources have notable shortcomings. ICNZ provides reliable insurance payout figures, but these reflect only insured losses, overlooking significant damage to infrastructure and uninsured properties.
This leads to a skewed understanding of disaster impacts, particularly in wealthier areas where insurance coverage is more prevalent. “Globally, insurance tends to retreat when the risks become too high to be covered affordably,” experts warn.
Underinsurance is expected to rise as climate change drives more extreme weather, making ICNZ’s data an increasingly unreliable indicator of overall losses. EM-DAT attempts to capture a wider range of disaster costs but struggles with inconsistencies in its New Zealand data, especially for events like wildfires and droughts.
The Consequences of Missing Data
When Cyclone Gabrielle and the Auckland floods devastated communities in 2023, there was no clear accounting of total damages, making it difficult to allocate resources for recovery and future resilience.
Without accurate data, decision-making in critical areas such as infrastructure investment, climate adaptation, and financial risk management is compromised.
A Case for a National Database
Other countries, including Australia, have recognised the importance of comprehensive disaster data and are actively investing in their own national databases. A centralised disaster-loss database would offer crucial benefits:
- Government agencies could make more informed policy decisions on flood protection, climate adaptation, and managed retreat strategies.
- Insurance and banking sectors would have better risk assessment tools, helping to refine insurance pricing and home loan approvals.
- Industries vulnerable to extreme weather, such as agriculture and infrastructure, could use historical data to improve resilience planning.
- Communities and individuals would gain access to crucial information for better preparedness and advocacy efforts.
Planned Relocation
One of the most pressing issues where disaster data is needed is planned relocation. Policymakers must decide where to allocate relocation funding as some areas become uninhabitable due to frequent flooding.
A comprehensive history of past flood events and cost assessments is essential to ensure that financial decisions are sound.
The Path Forward
The data New Zealand needs already exists but is scattered across different government agencies and private organisations. The logical next step is to centralise and manage this information within a national disaster-loss database.
Stats NZ, with its expertise in data collection and reporting, is well-positioned to take on this role. The catastrophic events of 2023 should serve as a wake-up call, demonstrating the urgent need for better data management.
A Matter of Urgency
Extreme weather events are becoming more frequent and costly. New Zealand remains in the dark about the true scale of its risks and vulnerabilities without a national disaster-loss database.
A comprehensive database is not just a technical upgrade—it is an essential tool for resilience and future-proofing the country against an increasingly unpredictable climate.