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Insurers’ support for July weather bomb affected communities tops $140 m

09 Dec 2021

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: [email protected]

Notes to Editors

 

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

Claim type

Claims

Insured losses ($m)

Domestic

3,939

111.95

Commercial Material Damage

945

19.88

Business Interruption/Loss of Profits

44

1.19

Marine (including Land Transit)

120

.15

Motor Vehicle

570

5.78

Other

24

1.55

 

TOTAL

5,534

140.50

 

Buller and Westland  

Claim type

Claims

Insured losses ($m)

Domestic

1,368

87.92

Commercial Material Damage

171

5.80

Business Interruption/Loss of Profits

11

.08

Marine (including Land Transit)

2

.05

Motor Vehicle

307

3.13

Other

5

.24

 

TOTAL

1,864

97.23

 

Upper South Island (excluding Buller and Westland)  

Claim type

Claims

Insured losses ($m)

Domestic

563

7.79

Commercial Material Damage

316

7.12

Business Interruption/Loss of Profits

13

.80

Marine (including Land Transit)

6

.06

Motor Vehicle

90

1.39

Other

8

0.18

Total

996

17.35

 

Wellington

Claim type

Claims

Insured losses ($m)

Domestic

1,342

13.73

Commercial Material Damage

190

3.09

Business Interruption/Loss of Profits

10

0.40

Marine (including Land Transit)

1

.003

Motor Vehicle

90

0.76

Other

9

0.26

TOTAL

1,642

17.88

 

North Island (excluding Wellington)  

Claim type

Claims

Insured losses ($m)

Domestic

666

2.51

Commercial Material Damage

268

3.87

Business Interruption/Loss of Profits

10

0.27

Marine (including Land Transit)

3

0.03

Motor Vehicle

83

0.49

Other

2

0.87

TOTAL

1,032

8.04

 

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