Source: Insurance Council of NZ
A report into the insurance industry’s response into New Zealand’s largest ever weather events has set out a number of actions to improve responses to future events.
The North Island Weather Events: The Insurance Industry response by the Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ) examined insurers performance of claims related to the Auckland Anniversary Weekend floods and Cyclone Gabrielle in early 2023.
“The loss and devastation on families and communities was severe and the insurance industry has worked hard to settle claims and get people back on their feet as quickly as possible,” ICNZ Chief Executive Kris Faafoi said.
The North Island weather events resulted in more than 118,000 claims at an estimated value of $3.8 billion.
Despite the scale and complexity of the weather events, 91% of claims were resolved in 12 months, a rate of progress that surpassed previous major disasters. Within 16 months, 96% were settled.
“The industry response reflects the many people who worked hard every day to help assess and resolve claims and provide certainty for customers, including the additional 1,000 plus staff brought in to help deal with the surge in claims.
“We recognise that some of those affected are still dealing with the impact of these events. The industry is continually looking to improve its response and help customers recover.
“Some of the issues identified are being addressed by insurers. These include refining event response plans, investing in digital tools to manage the claims process more effectively, and improving communications with customers and support for vulnerable customers.
“The lessons learnt from previous major events were a significant factor in the industry’s preparedness and response to the North Island weather events. However, each event is unique, and it takes time for insurers to fully scale up in response to a surge in claims while also supporting their everyday operations.
“The report identifies a number of external factors that had an impact on claims, such as the need for better data sharing among Emergency Management agencies and councils, timely assessments for stickered properties, and access to skilled labour to assess land claims.
“The industry is working closely with the Natural Hazards Commission to identify new approaches to make land claims processes more effective for customers.
“We are also fostering closer relationships with Emergency Management authorities so our sector can get access to information about the scale and impact of events as early as possible to ensure a faster and effective response and recovery.
“More broadly, the insurance sector has called for a cross-sector recovery framework to enhance coordination and improve the response and recovery to natural disasters.
“Insurers have also consistently emphasised the importance of a collective approach to address climate change risks. By supporting climate adaptation – such as avoiding building in dumb places and investing in public infrastructure – we can better prepare New Zealand for future natural disasters,” Kris Faafoi said.