Insurers’ Support For July Weather Bomb Affected Communities Tops $140 Million

The storm of 16-19 July 2021 that affected large parts of the country led to $140.5 million in insurance pay-outs across to the community covering 5,534 claims. Worst affected areas included Buller and Westland, particularly Westport, as well as parts of the lower North Island, upper South Island and Wellington.

"The importance and value of insurance is powerfully demonstrated during events like this," said Tim Grafton, Chief Executive of the Insurance Council of New Zealand - Te Kāhui Inihua o Aotearoa. "Insurers can often provide immediate assistance covering emergency repairs, providing cash advances or emergency accommodation depending on the policy.

"As the flood waters recede, insurers stand with the community as together repairs get done and property replaced. Covid, disrupted supply chains and increased costs, often borne by insurers, and shortages of materials and tradies mean this can take longer than in the past, but it’s something the sector is committed to working through with communities."

The storm left a raft of damage across much of the country, with severe flood damage in Westport, as well as slips and flooding throughout the upper South Island, lower North Island and Wellington.

Combined, there have been 3,939 claims for house and contents, 989 commercial and businesses related claims and 570 claims for motor vehicles.

Breakdown of claims by region

West Coast Upper South Island Wellington North Island Total

Number of claims 1,864 996 1,624 1,032 5,534

Value of claims $97.23 m $17.35 m $17.88 m $8.04 m $140.50 m

"Insurance is an essential service when it comes to disaster response and to helping rebuild communities after the worst happens across Aotearoa. Over the long term, insurance’s is also an essential voice in helping to minimise risk and building resilient communities, especially as the impacts of climate change are becoming more frequent and severe." said Tim.

ENDS - KA MUTU

Contact/Tukua ki: Christian Judge, ICNZ Communications Manager

christian@icnz.org.nz, 021 227 3914

ENDS

For more information contact:

Christian Judge | Communications Manager, Insurance Council of NZ

Email: christian@icnz.org.nz, Mobile: +64 (0)21 227 3914

Only 2020’s Timaru hailstorm ($170 m), 2004’s lower North Island storm, ($148 m inflation adjusted) and 1984’s Invercargill flood ($147.7 m inflation adjusted), have been more costly extreme weather events for insurers.

Combined weather-related losses for flooding and severe weather, 16-19 July 2021

Claims by type and value Number Value

Domestic 3,939 $111.95m

Commercial Material Damage 945 $19.88m

Business Interruption/Loss of Profits 44 $1.19m

Marine (including Land Transit) 120 $0.15m

Motor Vehicle 570 $5.78m

Other 24 $1.55m

TOTAL 5,534 $140.50m

Buller and Westland

Claims by type and value Number Value

Domestic 1,368 $87.92m

Commercial Material Damage 171 $5.80m

Business Interruption/Loss of Profits 11 $0.08m

Marine (including Land Transit) 2 $0.05m

Motor Vehicle 307 $3.13m

Other 5 $0.24m

TOTAL 1,864 $97.23m

Upper South Island (excluding Buller and Westland)

Claims by type and value Number Value

Domestic 563 $7.79m

Commercial Material Damage 316 $7.12m

Business Interruption/Loss of Profits 13 $0.80m

Marine (including Land Transit) 6 $0.06m

Motor Vehicle 90 $1.39m

Other 8 $0.18m

Total 996 $17.35m

Wellington

Claims by type and value Number Value

Domestic 1,342 $13.73m

Commercial Material Damage 190 $3.09m

Business Interruption/Loss of Profits 10 $0.40m

Marine (including Land Transit) 1 $0.003m

Motor Vehicle 90 $0.76m

Other 9 $0.26m

TOTAL 1,642 $17.88m

North Island (excluding Wellington)

Claims by type and value Number Value

Domestic 666 $2.51m

Commercial Material Damage 268 $3.87m

Business Interruption/Loss of Profits 10 $0.27m

Marine (including Land Transit) 3 $0.03m

Motor Vehicle 83 $0.49m

Other 2 $0.87m

TOTAL 1,032 $8.04m

NB: all figures are for private insured losses and are rounded to two decimal places.

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