Cyclone Gabrielle to cost insurers $1.44 billion: Perils
Insured losses from Cyclone Gabrielle will reach $NZ1.54 billion ($1.44 billion), Swiss-based catastrophe data company Perils estimates.
Cyclone Gabrielle arrived just two weeks after unprecedented floods struck Auckland and surrounds.
Head of Perils Asia-Pacific Darryl Pidcock says for 50 years, New Zealand has been “largely spared” from catastrophic weather events, so it was “all the more unusual that billion-dollar weather events should occur within weeks of each other”.
“These catastrophes represent one of the most challenging periods for the insurance industry since the Canterbury earthquake sequence of 2010/11,” Mr Pidcock said.
“Our industry loss data are used as triggers for catastrophe risk protections and thus facilitate the flow of risk capital into the New Zealand insurance market.”
Gabrielle brought extreme rainfall and strong winds to the North Island during February 11-17, leading to widespread damage as coastal inundation and landslides damaged property and critical infrastructure.
Although the eye did not make landfall, the width and intensity of the cyclone ensured its impact was felt across most of the North Island, Perils says, especially affecting the Hawke’s Bay region, Auckland and surrounding areas.
Large areas experienced wind gusts of 100 km/h, with a peak gust of 141 km/h recorded at Cape Reinga at North Island’s northernmost tip. Rainfall exceeding 200mm was widespread, while the Raparapaririki station in the Gisborne district received 568mm within 48 hours.
The impact of Cyclone Gabrielle was amplified as the torrential rain fell on soil saturated from the preceding flood, and storm surge and high tides contributed.
Perils will update its estimate of the market loss in May, and Mr Pidcock thanked insurers for providing their loss information “notwithstanding the current pressures”.
A New Zealand industry loss report from Perils in coming weeks will illuminate “the ongoing insurability of atmospheric perils,” he said.
