Insurers hit with copious flood claims

Major insurers operating in New Zealand have cumulatively received over 9,000 claims so far following severe storms and flooding in and around the biggest city, Auckland.

Suncorp’s Vero and AA Insurance brands have received about 3,000 claims, while IAG’s AMI, State and New Zealand Insurance brands have fielded over 5,000 claims.

Tower Ltd  said it had received over 1,000 claims and noted losses were substantial.

“This is a very significant event which will result in a lot of claims,” according to The Insurance Council of New Zealand (ICNZ). “It’s in the best interests of both the customer and the insurer to have claims settled as quickly as possible. Insurers will always try to prioritise those in greatest need when there is a major claims event. Likewise with organising repair work, there will typically be very high demand for assessors, tradies, building materials and other commonly damaged goods. This can mean repairs and replacements may well take longer than if they were required outside of such an event,” said Tim Grafton, CEO, ICNZ. “But right now, staying safe is the priority.”

Insurance companies expect the number of claims to rise further in the coming days, as the situation continues to unfold and customers identify damages.

Few people were reported to have lost their lives in the floods and landslips that have hit Auckland and millions of dollars of damage has occurred. A state of emergency remains in place in the city of 1.6 million.

Auckland has experience record levels of rainfall since a week and is expected to receive further heavy rain over the coming days, according to the city’s council.

The National Institute of Water and Atmospheric Research (NIWA) tweeted earlier that Auckland has now recorded more than eight times its average January rainfall and 40 percent of its annual average rainfall, according to a Reuters report.