Storms that battled the North Island of New Zealand last week will not be as costly to insurers as expected, according to the Insurance Council of New Zealand (ICNZ).

Torrential rain caused flooding and slips across a wide area, with the hardest hit being the southern areas of the Wairarapa and Taranaki regions. However, dry weather has helped dry out rain-soaked areas of the lower North Island.

ICNZ CEO Chris Ryan told Sunrise Exchange News comparisons with the big floods of 2004 – which cost $NZ100 million ($81 million) in insured damages – aren’t correct.

“The comparisons with the big floods of 2004 aren’t fair,” he said. “The areas affected last week were generally low-population areas.”

Mr Ryan says it could be up to a fortnight before the actual costs are known because larger claims for loss of business, stock and agricultural equipment usually take a while to be lodged.

“It’s too early to estimate the damage, but I expect it to be minimal in comparison to 2004.”