NZ insurers brace for claims after storm damage
New Zealand insurers expect an influx of claims running into millions of dollars after powerful storms hit the country last week.
The remains of Tropical Cyclone Fehi brought heavy rain, flash flooding and strong winds, while high tides added to the impact.
“We are expecting it to be a significant event, but it is still very early in the insurance cycle to know the extent of it,” Insurance Council of New Zealand (ICNZ) Operations Manager Terry Jordan told insuranceNEWS.com.au.
Damage was reported across much of the country, closing roads and cutting power.
On the South Island, states of emergency were declared in Buller and Dunedin, while evacuations were triggered in Westport, Mapua and the Nelson-Tasman region.
“Improving community resilience to extreme weather events is a priority,” ICNZ CEO Tim Grafton said. “New Zealand needs to plan and adapt in ways that will reduce the impact of natural disasters, because every dollar spent in pre-disaster adaptation measures saves many more after an event.”
Weather-related insurance losses in New Zealand reached a record of more than $NZ242 million ($223 million) last year after a series of extreme storms.