Extreme weather catastrophes set new financial loss records in New Zealand – Aon
Extreme weather catastrophes set new financial loss records in New Zealand – Aon | Insurance Business New Zealand
Catastrophe & Flood
Extreme weather catastrophes set new financial loss records in New Zealand – Aon
Research delves into two significant weather catastrophes
Catastrophe & Flood
By
Roxanne Libatique
New Zealand has set a new record for the costliest weather events in its history, as detailed in the latest 2024 Climate and Catastrophe Insights Report by Aon.
The report unveiled the severe financial impact of extreme weather conditions on New Zealand, spotlighting a dramatic increase in insurance and economic losses due to natural disasters.
Two significant weather catastrophes in New Zealand
Highlighting two significant weather catastrophes, the Auckland Anniversary floods of 2023 and Cyclone Gabrielle, the report detailed the economic and insurance toll on New Zealand.
The Auckland floods resulted in a staggering $5.57 billion in economic losses and $2.23 billion in insured losses.
Cyclone Gabrielle, occurring shortly thereafter, led to even greater economic damage, totalling $6.4 billion, with insured losses of $2.02 billion. This is compared to PERILS’ final calculation of insurance losses published last month, totalling $2,174 million.
These figures represent the highest weather-related financial impacts on the insurance industry New Zealand has ever seen, marking a notable escalation in the severity and cost of natural disasters.
The record-breaking nature of these events is underscored by comparing them to historical data. Prior to 2023, the most significant weather-related insurance loss was recorded in 2019, following the Timaru hailstorm, with losses adjusted to $202 million in today’s dollars.
Aon calls for enhancing extreme weather resilience
The 2024 Climate and Catastrophe Insights Report by Aon not only sheds light on the financial devastation caused by recent weather events in New Zealand but also serves as a call to action for organisations and governments to collaborate more closely.
James Knight (pictured), senior analyst and head of catastrophe research and advisory for Australia and New Zealand at Aon, commented on the disproportionate economic burden borne by New Zealand within the Pacific region in 2023.
“While the present-day climate is driving increasingly unpredictable extreme weather events and vulnerabilities for New Zealand, it does present an opportunity for organisations to take a more holistic approach to building resilience through preparedness and mitigation measures,” he said.
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