NZ insurer assessing impact of Tonga tsunami

21 January 2022

New Zealand insurer Tower said today it has 2500 customers in Tonga and is assessing the impact of last week’s underwater volcanic eruption and tsunami.

CEO Blair Turnbull says the company’s initial concern is with the people of Tonga, but all Tower staff are safe.

“Our focus is on supporting our people and customers in Tonga who have been affected by this natural disaster,” he said.

“Our Nuku’alofa branch is now open and we are assisting customers who have been severely impacted.”

He says the financial impact of the event is not yet known but Tower plans for large scale events.

“Alongside our robust reinsurance program that supports our resilience, we are in a strong position to support our customers throughout Tonga’s recovery.”

Some 2500 of Tower’s 310,000 total customers are in Tonga and most hold personal lines policies. The Tonga branch also supports about 300 commercial customers.

Meanwhile, the Insurance Council of New Zealand (ICNZ) says insurers are assisting with the clean-up at tsunami-hit Tutukaka marina, on the New Zealand’s North Island.

Many boats were wrecked by waves and pollution is a concern.

“While the focus for most is rightly on the direct impacts of the Hunga Tonga-Hunga Ha’apai eruptions across Tonga and neighbouring Pacific Islands, closer to home, insurers have a responsibility to get on with the job of arranging the safe clearance of wrecks from Tutukaka marina, pollution control, securing vessels and assisting in getting the marina fully functioning again,” CEO Tim Grafton said.

Work is already underway with some wrecks raised, but about four are still to be recovered. Several other vessels are damaged, but remain afloat, and some piers and mooring fingers are insecure.

ICNZ estimates recovery work will cost millions of dollars.