Insured losses of around $NZ10 million ($7.4 million) are expected from the tornado that hit the Auckland suburb of Albany last week, killing one person.

Insurance Council of New Zealand CEO Chris Ryan has made the preliminary estimate after talking to assessors and loss adjusters.

Tornadoes are rare in New Zealand and usually only last a few minutes, but the Albany tornado was particularly damaging as it hit a crowded area of the country’s largest city, damaging about 25 houses and commercial businesses.

It has added to a record year of severe natural events for New Zealand and came only a week after losses from storms and flooding in the Hawke’s Bay region.