Asset Management Plan Update No. 8 – Insurance Changes

The insurance of infrastructure assets was brought into sharp focus by the Christchurch Earthquakes.

In June 2013 the Auditor General published a very good paper on the subject Insuring Public Assets.

As you consider updating the risk management sections of your Asset Management Plan, including detail of your insurance arrangements, the Auditor General’s paper is well worth reading and review.

The August 2013 Cabinet Paper –  Better Local Government: Improving Infrastructure Delivery and Asset Management also canvassed insurance issues starting on page 14.  This Cabinet Paper is also worth review.

The recommendations of this Cabinet Paper were translated into the Local Government Act Amendment (No 3) Bill, which is currently before Parliament.

A robust review of Asset Management Plan risk management including insurance provisions will assist in supporting the 30-year Infrastructure Strategy, and the Long Term Plan update.

PHOTO CREDIT: Karl Hipolito