'Groundhog Day, but bigger scale': NZ brokers battle flood claims influx 

New Zealand’s broking community has been thrust into action after more than 250mm of rain on Friday lashed Auckland, the nation’s biggest city, and surrounds in unprecedented flooding.  

Auckland-based Primesure Brokers MD Cameron Hollis tells insuranceNEWS.com.au North Island towns such as Kumeu are struck for the second time in recent years.  

“It is just Groundhog Day but on a bigger scale,” Mr Hollis said. “This was just like that but with more volume of claims because it’s Auckland-wide. 

“We have clients scattered all over the North Island – Coromandel is getting hit, and the middle-east coast of the North Island as well. Not nice, but this is what we do right so we just have to get on with it. The water is pretty much all gone now and it is bad – you guys in Australia have had some pretty mean floods. It’s just clean up now, as you well know.”  

Homes, businesses, roads and infrastructure were wrecked by the floods, which the Insurance Council of New Zealand (ICNZ) says may be New Zealand’s largest ever weather-related claims event, with more than 20,000 claims lodged already. Analysts at Jarden estimate insured losses of $NZ900 million ($821 million) are possible, according to local media. 

The team at Primesure worked all weekend to assist clients and say 90% of expected claims are already lodged, and clients are helping to assess the damage for insurers to relieve pressure on strained resources. 

“I was on the ground in Kumeu on Saturday morning going to the same people that I went to last time. I basically put everybody onto doing claims on the weekend and we went into the office on Tuesday and had a battle plan ready to go. 

“Our priority was to get claims forms to people and lodge claims as quickly as possible. We’ve been there before so I knew what we were to deal with and it was just breaking the back of all the claims coming in and getting them loaded. 

“We’ve probably submitted 90% of the claims we’re going to get, and tagged the major losses and advised the insurance companies. 

“We’re still going to be very, very busy, it’s going to be making sure we get the right information and making it easier for the insurance companies.  

“We’ve got clients that can assist with carpet and building stuff and bits and pieces. We are sending our clients sparkies and plumbers, they’re making safe and taking photos and then submitting invoices and quotes so it doesn’t need the assessors coming out.  

“What we need to do is check the insurance companies are okay for our guys to do this stuff – because the people that they use all the time are not going to have the resource to do it.” 

Primesure has seen several multi-million dollar claims, with some manufacturing clients such as a woodwork firm and a kitchen and cabinetry supplier hard hit and likely to struggle to get replacement machinery.  

Brokers say unlike in Australia, insurance policies in New Zealand exclude very little, including flood. 

Godfrey Chartered Loss Adjusters Principal Consultant Business Interruption Chris Thom tells insuranceNEWS.com.au his firm has responded quickly and sent property adjusters to affected areas. 

Auckland-based Frank Risk Management Senior Broker Anna Parker says brokers and claims teams had been working “around the clock” to assist, and she has seen neighbours helping each other with food, beds and clean up, and many “welcome to use our office” offers. 

“The insurance world is grinding. In extreme moments like this the true measure of insurance is felt,” Ms Parker said. “Everyone is hustling to get claims moving along. Insurers want to pay them, they want to help and they want to make sure you feel comfort during uncertain times. 

“To my insurance buddies who have been hauling ass all weekend … it’s intense and you are appreciated. You are making sure people don’t feel alone.” 

Event Cover Underwriting Manager Stu Hartley had a family member affected by the floods, and tells insuranceNEWS.com.au a number of events in North Island regions have been impacted.  

“Our clients would have had event cancellation insurance or contingency insurance and that covers you for your irrecoverable costs and expenses, should they then be cancelled, or a downturn in your net profit.  

“It covers you to provide that kind of reassurance that you’re able to refund those ticket costs, meet the contractual obligations of the suppliers. So it’s an entire kind of supply chain type of type of coverage. Having just gone for two years of covid … it’s just highlighted the fact that you may need to look at a type of risk transfer in events. 

“The word unprecedented has been bandied around but it really is the worst flooding we’ve ever seen in Auckland. The damage that’s caused to some communities here is probably irreparable. My heart goes out to those, and to the brokers that are trying tirelessly to assist as best they can.” 

Mr Hollis says most clients are just grateful to have insurance, unlike many lower-income residents who “pretty much lost everything”. 

“Most of our clients are pretty resilient. It’s not nice, but we’re lucky we do actually have insurance and we can get stuff done,” he said.