INSURANCE RESPONSE TO JULY SEVERE WEATHER THROUGH WESTPORT AND NZ REACHES $122M

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 typeClaimsInsured losses ($m)
Domestic3,79099,541,490
Commercial Material Damage77515,480,489
Business Interruption/Loss of Profits20651,654
Marine (including Land Transit)12249,454
Motor Vehicle5905,050,635
Other201,216,224
 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 typeClaimsInsured losses ($m)
Domestic1,29777,925,403
Commercial Material Damage1103,991,815
Business Interruption/Loss of Profits335,219
Marine (including Land Transit)256,435
Motor Vehicle3553,244,647
Other2162,000
 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 typeClaimsInsured losses ($m)
Domestic5677,110.016
Commercial Material Damage2746,243,730
Business Interruption/Loss of Profits8343,349
Marine (including Land Transit)5147,980
Motor Vehicle74811,889
Other858,784
 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 typeClaimsInsured losses ($m)
Domestic1,29512,237,450
Commercial Material Damage1472,436,207
Business Interruption/Loss of Profits18,700
Marine (including Land Transit)13,500
Motor Vehicle82587,482
Other7112,442
 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 typeClaimsInsured losses ($m)
Domestic6312,268,621
Commercial Material Damage2442,808,737
Business Interruption/Loss of Profits8264,386
Marine (including Land Transit)441,539
Motor Vehicle79406,617
Other3882,998
 TOTAL 969 $6,672,889