North Island weather events claims 96% settled
North Island weather events claims 96% settled | Insurance Business New Zealand
Insurance News
North Island weather events claims 96% settled
Two categories of insurance claims are about to be 100% settled
Insurance News
By
Jonalyn Cueto
Sixteen months after New Zealand experienced the Auckland Anniversary floods and Cyclone Gabrielle, insurance claims from these events are nearing full resolution. As of June 1, insurers have settled 112,746 out of 118,037 claims, amounting to approximately $3.8 billion, according to the Insurance Council of New Zealand (ICNZ).
ICNZ said that 96% of residential house claims have been settled, with contents and motor claims reaching 99% and 98%, respectively.
“Insurers have made significant progress in getting claims settled into the high 90’s range and provide certainty to those affected to get on with their lives,” said ICNZ chief executive Kris Faafoi. He contrasted this with the slower pace of settlement after past natural disasters like the Canterbury and Kaikōura earthquakes, emphasising the effectiveness of the current process.
The high number of claims reflects the severity of the events and their complex impact, including issues related to land claims under the Earthquake Commission Act and the council-led categorization process. Faafoi acknowledged that while many claims have been approved with repairs either scheduled or underway, land categorization and buyout offers have added complexity to decision-making for homeowners.
To date, insurers have paid out $3.3 billion to aid families and businesses in recovery. The total expected economic impact is around $4 billion. The industry is focused on finalizing the remaining claims and urges policyholders to stay in touch with their insurers.
“The industry is working hard to support customers and finalise the remaining claims and provide certainty for those affected as quickly as possible. We encourage people to keep in contact with their insurer about their claim,” Faafoi said.
Progress of claims processes
As of June 1, the claims progress is as follows:
For the Auckland Anniversary event, 56,537 of 59,189 claims have been settled, with a total payout of $1.7 billion against an estimated cost of $2 billion. For Cyclone Gabrielle, 56,209 of 58,848 claims have been settled, with $1.5 billion paid out against an estimated cost of $1.8 billion.
Overall, claims across both events show a settlement rate of 96%. Residential house claims are 95% settled, contents claims 99%, and motor claims 98%. Business claims are 88% settled, marine claims 97%, and crop claims 100%. The “Other” category, including unallocated claims and a small portion of travel insurance, shows a settlement rate of 92%.
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