New Zealand insurers have had bad luck with natural disasters recently, and the floods that hit the eastern North Island almost a fortnight ago have led to a political attack on the industry. NZ Civil Defence Minister George Hawkins called insurers “mean spirited” for putting the needs of policyholders ahead of people with no insurance.

But Insurance Council of New Zealand (ICNZ) CEO Chris Ryan says it is ridiculous for a minister to make such comments while loss adjusters are working overtime to keep up with the needs of paying customers. About half the people affected by the latest floods were not insured.

“The insurance industry feels very deeply for the uninsured New Zealanders whose lives have been devastated by floods, but it has a responsibility to its customers first,” he said.

Mr Ryan says the industry had to bring in claims staff from all over the country to keep up with the flow of work, and some adjusters have been working 20-hour, seven-day weeks.

FMG – the country’s leading rural insurer – would dispute the notion that it is “mean spirited”. Last week it announced a donation of $NZ100,000 to the Mayoral Relief Funds established to help citizens worst affected by the floods.

Mr Ryan says that as soon as the pressure is off, the industry will look into providing help for uninsured New Zealanders. He says the Government also needs to look at the issue of underinsurance and non-insurance.

He agrees with Prime Minister Helen Clark that Kiwis need to reassess the issues associated with floods. “Flooding is becoming more frequent and far more damaging,” he said. “Climate change is affecting our nation.”

ICNZ is reluctant to estimate the cost of the floods, but the insured damages bill is likely to be in the tens of millions. The Earthquake Commission has received claims of more than $NZ7 million.

The latest disaster comes just a few months after the Manawatu/Wanganui floods, which cost the industry $NZ112 million.