Weather insurance claims in July hit $43.7 million
Extreme weather in July resulted in $43.7 million in insurance claims, the Insurance Council estimates.
July’s events take the running total for such claims in 2022 to about $245m, compared to $324m for all of 2021, which was 18% above the year before and set a new record.
August data is not in yet, meaning the number of claims from the flooding that hit Nelson City and Tasman District in August, which resulted in 71 homes being red-stickered and 93 yellow-placarded, is not yet known.
Insurance Council chief executive Tim Grafton said 2022 could set a record for extreme weather claims.
He said the country must act to increase resilience as climate change took hold.
‘‘This is not just about those things typically covered by general insurance such as our homes, vehicles and businesses. We also need to protect our infrastructure, environment and general way of life which is all too easily disrupted by climate-driven extreme weather events,’’ he said.
‘‘The rising cost of climate change is plain for all to see, both within Aotearoa and overseas.
‘‘This comes at a time when we are facing rising general inflation, outsized building cost inflation and ongoing supply chain issues. These are tough times for customers and insurers alike.’’
Insurer Tower has already switched to a risk-based approach, with individual properties given premiums which reflected their risk, but IAG, which owns the State, AMI and NZI insurance brands, has not.
Grafton said about 96% of residential homes in New Zealand were insured, and almost all included coverage for extreme weather events.
But there were costs that might not be reflected in the $43.7m payout figure, including damage to infrastructure that might not be insured, like homes, or longterm impacts on industries like tourism, if visitors started avoiding areas hit by extreme weather.
This might prove particularly pertinent for Nelson, which is a popular tourist destination.
The Insurance Council reported three periods of extreme weather, based on influxes of call from customers making claims.
These included a countrywide period from July 11 to 13 and July 24 to 27, and a South Island period from July 17 to 21.