Karekare in West Auckland was hit hard by Cyclone Gabrielle in 2023. Photo: Leonard Powell
The Fast-Track Approvals process has the potential to boost resilience to natural disasters - but at the same time, projects must not increase that risk, insurers say.
But it was "critical" that such initiatives did not "inadvertently exacerbate risks to communities", he said.
"The sector wants insurance to stay affordable and accessible in the future."
Under the Fast-track Approvals Bill, companies would be able to apply to bypass consent processes, with three ministers - Shane Jones, Chris Bishop and Simeon Brown - having the final say over their projects.
Faafoi said if the bill was passed, the consideration of "natural hazard risk reduction and the resilience of communities" would need to be central to the decision-making process.
The Insurance Council made a submission to the bill and appeared at a select committee hearing on the matter last week.
Faafoi said the sector had made some suggestions about certain information that should be part of developers' applications.
It should be feasible for applications to be declined if the three ministers "see fit, if the natural hazard risk is too high", he said.
"We really want to make sure this is done in a wise way."
The Fast-track Approvals Bill has been described as a "one stop shop" to gain quick approval for nationally or regionally important infrastructure or developments. It would sit above 10 different Acts and regulations, including the Resource Management Act.
The bill has been met with mixed reactions, and last weekend, thousands marched against it in protest. Forest and Bird chief executive Nicola Toki has called it an "environmental nightmare".
However, Eden Park's operators have welcomed it, saying it could be used to "streamline" consent for the stadium to host more concerts and events.
Meanwhile, Ngāi Tahu has asked for amendments to the bill to recognise the iwi's rangatiratanga and avoid costly legal battles with the Crown.