The Natural Hazards Commission Toka Tu Ake will make changes in response to an independent review of claims handling it commissioned following New Zealand’s North Island weather catastrophes.

The Auckland floods and Cyclone Gabrielle early last year triggered almost 120,000 private insurance claims, at an estimated cost of $NZ3.75 billion ($3.4 billion), and almost 9000 claims to the national scheme, the report from Martin Jenkins & Associates says.

The events were the first major test of the Natural Disaster Response Model agreed after the Christchurch earthquakes to smooth processes for consumers and improve co-ordination between the state-backed Natural Hazards Commission and private insurers.

“We know from changing weather patterns and severe storms in other parts of the world that events like this could happen again in the future,” commission CEO Tina Mitchell said. “The review has shown our approach with private insurers is better for homeowners, but there are areas where we can keep improving.” 

The weather disasters were mostly covered by private insurers, which handle floods, but the commission deals with land damage, with certain restrictions.

The model allows claims to be lodged with private insurers, rather than a consumer having to deal with two organisations, as payments involving both groups are sorted in the background.

The report found frustrations after the North Island events included the strict legal limits that apply to land damage cover, low awareness of those limits and the time it takes to process a land claim, which can involve a number of technical assessments.  

Recommendations include improving public awareness about the cover, and speeding or adjusting claim assessment processes when resources are stretched across different agencies.

“We have found the review very insightful and it gives us targeted areas to focus on as we continuously improve the model,” Ms Mitchell said. “I’m also pleased that many of the recommendations touch on activities we already have under way.”

The report’s 24 recommendations are grouped around customer experience, the end-to-end process, the land claim assessment process and various roles.

“We will work with insurers, local councils and communities as we implement our response to the review,” Ms Mitchell said. “Their insights and perspectives will be critical, as steps are taken to be prepared for the next event.”