Some 96% of all private insurance claims from the Auckland Anniversary weekend and Cyclone Gabrielle weather events have been fully settled by insurers, 16 months after two of New Zealand’s most costly natural disasters
The latest figures show 112,746 of 118,037 claims have been settled as of 1 June 2024, at an estimated total cost of $3.8 billion. By insurance type, residential house claims stood at 96% fully settled and contents and motor claims at 99% and 98% respectively.
“Insurers have made significant progress in getting claims settled into the high 90’s range and provide certainty to those affected to get on with their lives,” Insurance Council of New Zealand chief executive Kris Faafoi said.
“In comparison, it took four years after the first Canterbury earthquake, and nine months after the Kaikoūra earthquake, just to get over 50% of claims fully settled. The pace of settlement rates from last year’s weather events shows insurers have been extremely effective in supporting their customers and providing confidence about the future.
“The sizeable number of claims has reflected the severity of the events and its impact has been complex and challenging, including dealing with land claims under the Earthquake Commission Act and the council-led categorisation process which have affected the timing of resolving claims.
“We know too there are homeowners with claims that have been approved and repairs scheduled or already underway. In some cases, land categorisation and buyout offers have added complexity to decisions for those affected.
“So far, $3.3 billion has been paid out by insurers to get families and whanau back on their feet and keep people and businesses in work to repair and replace what has been lost. Overall, up to $4 billion is expected to be injected into the economy and help restore people’s lives. “The industry is working hard to support customers and finalise the remaining claims and provide certainty for those affected as quickly as possible. We encourage people to keep in contact with their insurer about their claim,” Kris Faafoi said.
Claims progress
| Summary as of 1 June 2024 | Auckland Anniversary | Cyclone Gabrielle | Total both events |
| Claims received | 59,189 | 58,848 | 118,037 |
| Claims Settled | 56,537 | 56,209 | 112,746 |
| Paid to date | $1,723,323,240 | $1,533,410,066 | $3,256,733,306 |
| Estimated cost | $1,978,097,458 | $1,835,240,569 | $3,813,338,027 |
Progress by type of insurance
| For both events to 1 June-2024 | Claims Received | Claims fully settled | Claims Progress | Paid to date $ | Estimated cost $ | Payment progress |
| House | 58,293 | 55,953 | 96% | $1,734,601,874 | 1,817,876,451 | 95% |
| Contents | 24,071 | 23,766 | 99% | $264,573,465 | 267,196,018 | 99% |
| Business* | 18,590 | 16,290 | 88% | $1,000,553,588 | 1,457,798,658 | 69% |
| Marine | 296 | 288 | 97% | $6,043,522 | 7,345,913 | 82% |
| Motor** | 15,737 | 15,479 | 98% | $221,421,265 | 215,317,612 | 103% |
| Crop | 69 | 69 | 100% | 643,766 | 643,766 | 100% |
| Other*** | 981 | 901 | 92% | $28,895,827 | 47,159,609 | 61% |
| Total | 118,037 | 112,746 | 96% | $3,256,733,306 | $3,813,338,027 | 85% |
Note:
* Business Interruption claims mean payments are spread over time with progress tracking as expected (82% by number and 64% by value).
** Motor claims reporting show total amount paid and do not reflect recoveries, which would reduce the overall total. This is the reason the amount paid exceeds 100% of the estimated total cost.
*** Other can be made up of claims not yet allocated to a line of business which will change but also includes a very small portion of things like travel insurance claims related to the event.
