The severe weather events of the Auckland Anniversary Weekend floods and Cyclone Gabrielle have had a significant impact on insurance claims in New Zealand.

The floods caused extensive damage to properties, roads, infrastructure, and businesses in the affected areas. This damage has resulted in numerous insurance claims being made for repairs and replacements.

As more extreme weather events or natural disasters occur, insurers are coming up against several profitability challenges. The unpredictable nature of these events can lead reinsurers to raise premiums in response to increasing weather-related losses, which causes further financial strain for insurers and is passed on to consumers through higher insurance premiums.

The cost of extreme weather events

Insurers have paid out $2.053 billion, covering 64% of claims by volume and 59% by value, for the Auckland Anniversary Weekend floods and Cyclone Gabrielle. The estimated total cost of claims for these events is $3.5 billion across 112,812 claims. Settlement progress is noted, with 96% ($211.6 million) of motor claims, 84% ($216.3 million) of contents claims, 46% ($629.5 million) of business claims, and 61% ($972 million) of house claims settled. Insurers have deployed extra resources, including staff from overseas, to manage the large-scale disaster aftermath.

In addition to the mentioned events, extreme weather in the North Island in February and May has brought the total climate-related claims in 2023 to 119,435, amounting to around $3.563 billion. The breakdown of claims includes the Auckland Anniversary floods (57,205 claims, $1.843 billion), Cyclone Gabrielle (55,607 claims, $1.657 billion), North Island Weather in February (2,801 claims, $20.78 million), and North Island Weather in May (3,822 claims, $41.4 million).

Here is a detailed breakdown of claims by category:

• House: 30,347 claims, $968.27 million
• Contents: 12,007 claims, $135.15 million
• Business: 5,940 claims, $606.01 million
• Marine: 51 claims, $1.48 million
• Motor Vehicle: 8,322 claims, $109.24 million
• Crops: 0 claims, $0
• Other: 538 claims, $22.98 million

Furthermore, a regional breakdown of Cyclone Gabrielle claims is presented:

• Hawke’s Bay: 18,526 claims, $1.07 billion
• Tairawhiti: 2,602 claims, $86.18 million
• Auckland: 14,794 claims, $174.24 million

Claims for other weather events in February and May 2023 are also outlined, with detailed information on categories and values. The total climate-related claims for 2023 amount to 119,435, with a total value of $3.56 billion!

To see more information about ‘2023 Climate Disaster Payouts’ click here

What we can do to help

At C&R, we're here for you, committed to providing support and guidance throughout the claims process. While we've been fortunate to avoid the scale of challenges seen in the North Island, our focus remains on practical assistance. We offer a range of insurance options tailored to provide competitive and effective protection for your specific needs.

Our commitment is straightforward – transparency, honesty, and clear communication. We break down the complexities of the insurance industry, ensuring you understand the details of your coverage.

Above all, our dedication is to safeguard what matters most – your business, family, and possessions. In the event of a claim, we're here to offer practical support, working diligently to secure the best possible outcome for your safety and future. Your well-being is our priority.