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Insurance response to July severe weather through Westport and NZ reaches $122m

07 Sep 2021

Preliminary figures for the 16-19 July storm, that saw a rare red weather warning issued by Metservice, has seen 5,207 claims made to date with insurers supporting their customers with at least $122m for insured losses.

The storm left a raft of damage across much of the country, with sever flood damage in Westport, as well as slips and flooding through the upper South Island, Wellington and North Island.  Combined there have been 3,790 claims for house and contents, 795 commercial and businesses related claims and 590 claims for motor vehicles.

Tim Grafton, CE Insurance Council of New Zealand – Te Kāhui Inihui o Aotearoa, says the preliminary figures reflect the damage severe weather and flooding can leave behind.

“The value of insurance is powerfully demonstrated with the support provided to Westport customers, where we have seen insurers meet over $85million of losses in a town with a population of about 4,000.

“Insurance has never been more important. This year severe weather has affected many of our communities, with the impacts of climate change being felt by many, with severe weather becoming more frequent and more severe.”

During New Zealand’s recent lockdown, insurers have continued to progress existing claims for affected customers where restrictions have allowed, engaging with those awaiting repairs to be completed to ensure clear expectations are outlined for the remaining work.

ICNZ notes that the sector has noticed the knock-on effect of a very active pre-lockdown building market alongside ongoing COVID-19 related impacts. In some cases, members have reported difficulties in securing specific trades or sub-contractors, or there has been a delay or longer lead time for certain building materials or household items. In Westport itself the recovery is also affected by a shortage of accommodation for tradies coming into the region to carry out work.

“These aspects are completely out of insurers hands, but they are doing all they can to support their customers affected by delays or the impacts of COVID on supply chains that may mean a longer recovery for some.”

A break down of the preliminary loss figures by region follows.

 

Combined weather-related losses for West Coast, Upper South Island, Wellington and North Island flooding and severe weather, 16-19 July 2021 (NB: all figures are provisional and are for private insured losses)

Claim type

Claims

Insured losses ($m)

Domestic

3,790

99,541,490

Commercial Material Damage

775

15,480,489

Business Interruption/Loss of Profits

20

651,654

Marine (including Land Transit)

12

249,454

Motor Vehicle

590

5,050,635

Other

20

1,216,224

 

TOTAL

 

5,207

 

$122,189,946

 

Weather-related losses for West Coast flooding and severe weather, 16-19 July 2021 (NB: all figures are provisional and are for private insured losses)

Claim type

Claims

Insured losses ($m)

Domestic

1,297

77,925,403

Commercial Material Damage

110

3,991,815

Business Interruption/Loss of Profits

3

35,219

Marine (including Land Transit)

2

56,435

Motor Vehicle

355

3,244,647

Other

2

162,000

 

TOTAL

 

1,769

 

$85,415,519

 

Weather-related losses for Upper South Island flooding and severe weather, 16-19 July 2021 (NB: all figures are provisional and are for private insured losses)

Claim type

Claims

Insured losses ($m)

Domestic

567

7,110.016

Commercial Material Damage

274

6,243,730

Business Interruption/Loss of Profits

8

343,349

Marine (including Land Transit)

5

147,980

Motor Vehicle

74

811,889

Other

8

58,784

 

TOTAL

 

936

 

$14,715,748

 

Weather-related losses for Wellington flooding and severe weather, 16-19 July 2021 (NB: all figures are provisional and are for private insured losses)

Claim type

Claims

Insured losses ($m)

Domestic

1,295

12,237,450

Commercial Material Damage

147

2,436,207

Business Interruption/Loss of Profits

1

8,700

Marine (including Land Transit)

1

3,500

Motor Vehicle

82

587,482

Other

7

112,442

 

TOTAL

 

1,533

 

$15,385,781

 

Weather-related losses for North Island flooding and severe weather, 16-19 July 2021 (NB: all figures are provisional and are for private insured losses)

Claim type

Claims

Insured losses ($m)

Domestic

631

2,268,621

Commercial Material Damage

244

2,808,737

Business Interruption/Loss of Profits

8

264,386

Marine (including Land Transit)

4

41,539

Motor Vehicle

79

406,617

Other

3

882,998

 

TOTAL

 

969

 

$6,672,889