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Insurers escape big bills from bad NZ weather

As New Zealand continues to pick up the pieces after the Christchurch earthquake the country has been battered by a week of destructive weather – and it isn’t over yet.

A broad storm trough across a series of fronts swept the country last week, cutting power to 12,000 homes in the North Island while snow caved in the roofs of a stadium and a store in the southern city of Invercargill.

Catastrophic losses of newborn lambs and calves are expected as the storm rages for at least the next two days, with gale force winds forecast for many areas.

NZ MetService spokesman Leigh Mathieson told insuranceNEWS.com.au the storm appeared to be a prolonged event but was actually a series of storms which haven’t blown out yet.

“Because it was slow-moving places were affected for a longer period of time, and the sheer persistence of the wind and snow took its toll,” she said.

NZ Insurance Council of NZ CEO Chris Ryan told insuranceNEWS.com.au the impact on the insurance industry is likely to be minimal.

“It was a nasty storm but most of the losses are in early spring lambs,” he said. “It’s not had a big effect on the insurance industry.”

But Insurance Brokers Association of New Zealand CEO Gary Young says the storm might cause “logistical issues” for the industry.

“The obvious first impact of the storms is on loss adjusters, who are already hard-pressed after the earthquake,” Mr Young said.

Meanwhile, aftershocks continue to rock Christchurch following the September 4 quake. Mr Ryan says the industry will group claims from the initial quake and aftershocks together.

“Aftershocks are deemed to be part of the main quake event,” he said.