The Insurance Council of New Zealand has recommended measures to better respond to disasters after reviewing the industry’s handling of the Auckland floods and Cyclone Gabrielle in 2023.

It says it found challenges in areas including claims management, limited property access and information-sharing among parties.

Its proposed solutions have in some cases already been implemented by ICNZ’s insurer members. For example, insurers have reviewed their claims management plans, simplified the claims process and invested further in digitisation to speed up responses.

But action is still needed, particularly in areas where collaboration with other stakeholders such as councils is necessary after a natural catastrophe, ICNZ says.

On property access, the review says insurers had difficulty getting to some of the worst-hit homes due to damaged roads, silt, debris and red or yellow status stickers.

“Councils stickered many properties after being flooded, which prohibited or restricted access to homes,” ICNZ says.

“Insurers continued to face delays in getting access to these properties, as they required council approval to have the stickers reviewed and removed, which could be difficult and time-consuming.”

Because the process varied among councils, insurers had to create different procedures for staff in different locations to secure access to properties.

Land categorisation is another key challenge. The review found Auckland City Council’s categorisation process has created delays and uncertainty for claimants.

“The delays by councils in confirming land categorisations meant some insurance customers wanted to delay managed repairs and cash settlements until they had certainty,” ICNZ says.

“There may also be ongoing disputes over final land categorisations, leading to further delays and customer dissatisfaction.

“At the time of this report, insurers are communicating with customers to provide clear information on land categorisations and the potential impact of delays (such as exhausting their temporary accommodation benefit and the ability to pause construction contracts), to allow customers to make informed decisions.”

ICNZ says the Auckland Anniversary floods and Cyclone Gabrielle were the two largest weather events on record for insurers, costing $NZ2 billion ($1.8 billion) and $NZ1.8 billion ($1.6 billion) respectively.

Click here for the report.