Insurers reveal steep toll of July’s extreme weather

The Insurance Council of New Zealand (ICNZ) has released statistics showing that extreme weather in July resulted in 6,266 general insurance claims, valued at $43.7 million.

The general insurance sector encountered three extreme weather events in July. The first was from July 11 to 13, across the entirety of New Zealand. It resulted in 2,570 claims, estimated at $15.4 million. From July 17 to 21, extreme weather over the South Island led to 1,694 claims and $16.1 million in losses. Finally, from July 24 to 27, the whole country experienced rough weather, causing 2,002 claims, which were worth $12.2 million.

ICNZ also published the final claims data for the May 20 Levin tornado. The preliminary figure of 807 claims valued at $8.1 million has been revised to 930 claims worth $11 million.

“Extreme weather continues to hit Aotearoa New Zealand’s communities hard,” said Tim Grafton, ICNZ chief executive. “We must act now to increase resilience and so lessen the impact of climate change on our way of life. This is not just about those things typically covered by general insurance such as our homes, vehicles and businesses. We also need to protect our infrastructure, environment and general way of life which is all too easily disrupted by climate-driven extreme weather events.”

Preliminary claims data for August’s extreme weather-related claims are expected around end-September. According to ICNZ, July’s extreme weather events take the running claims total for 2022 to around $245 million, compared to $324 million for all of 2021, which set a new record.

“The rising cost of climate change is plain for all to see, both within Aotearoa and overseas,” Grafton said. “This comes at a time when we are facing rising general inflation, outsized building cost inflation and ongoing supply chain issues. These are tough times for customers and insurers alike.”