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New Zealand's 2022 insured weather loss nears $300 million

New claims data from the Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ) shows extreme weather in mid-August resulted in 3165 general insurance claims valued at $NZ47.98 million ($42.44 million).

Major rainfall soaked much of the South Island and the top of the North Island in August. Rivers, houses and roads flooded, forcing hundreds to evacuate as Auckland had its warmest August night ever. The event followed New Zealand's wettest July on record.

The running total for general insurance losses for extreme weather events in 2022 now stands at $NZ298 million ($263.46 million), compared with $NZ324 million ($286.44 million) last year.

ICNZ CEO Tim Grafton says the August event was devastating and will take a long time to recover from, particularly for communities in Nelson and the Marlborough Sounds. The Nelson Tasman District accounted for 1248 private insurer claims with a provisional value of $NZ21.64 million ($19.13 million).

“Once all the assessments are safely completed, the final claims data for August’s event will likely be higher,” Mr Grafton said, adding it has been made more difficult for some by the time taken to deal safely and methodically with the event.

“In a hillside area of Nelson, this is necessitating extensive geotechnical work to ensure the land has stopped moving, followed up with site specific damage assessments,” he said.

Local councils are working closely with residents, geotechnical experts, insurers and "an army” of contractors, businesses and community groups to help restore those affected.

Mid-June floods led to 3552 claims worth $NZ20.34 million ($17.98 million), according to newly released final claims data from ICNZ.

"This is yet another reminder of the urgency with which incoming councils must deal with building resilience to climate change,” Mr Grafton said.

ICNZ has said the trend is putting a strain on “insurers and householders alike”.