Vero on most expensive weather event for NZ rural insurance
According to the executive manager, the blow dealt to drystock and dairy farmers is sizeable. Also hit, meanwhile, are horticulture, viticulture, and other crop farmers in the region.
Whitney also highlighted that silt cover causing crop loss and the loss of grazing is likely to affect the rural sector for some time. Road closures, additionally, are expected to reduce animal movement options.
“We have people on the ground in the affected regions to expedite assessments and encourage customers yet to make a claim to contact their broker to get support as quickly as possible,” said Whitney, whose camp noted that rural customers with business interruption cover may be supported against associated losses.
Based on Vero’s initial estimates, claims costs are expected to be well in excess of $20 million. Costs are expected to continue to rise, however, as the insurer gets a better understanding of customer losses and the available policy response.
Government support
Aside from insurance, farmers and growers affected by Cyclone Gabrielle can also turn to the available grants offered by the government.
So far, the primary sector is being provided support worth $29 million – of this sum, $25 million comes in the form of grants for urgent work such as fencing and silt clearing. An initial $4 million in rural recovery funding, meanwhile, has been allocated for needs that are not being met by other organisations.
Agriculture Minister Damien O’Connor previously said: “Our focus will be on the hardest hit areas, such as Hawke’s Bay, where key primary sector infrastructure, along with crops, vines, and pastures were knocked out by the cyclone, not to mention the loss of stock and essential feed faced by our farmers.
“It’s vital we help rural businesses recover so we can keep our regional economies ticking and exports flowing.”
Further assistance
Vero, meanwhile, has actively reached out to policyholders identified as being in vulnerable circumstances to link them with additional support through Lifeline Connect – Lifeline Aotearoa’s specialist service offering connections to government and charitable support services.
Whitney is also encouraging rural customers, who have access to the Best Doctors service, to take advantage of its mental health navigator programme. Those impacted are also advised to seek support from Rural Support Trust.
To date, Vero Insurance New Zealand has received more than 460 rural claims from Cyclone Gabrielle.
