‘Unprecedented time for claims,’ says ICNZ

2023 has not started on the best note, as severe rainfall followed by Cyclone Gabrielle has caused havoc across the North Island.

The actual damage done by Cyclone Gabrielle and the Auckland flooding is still being worked out as the authorities are trying their best to get things back on track.

There is no denying that the insured losses from the recent extreme weather events will far exceed the comparable losses for all of 2022 - a record year for insured losses from severe weather at around $350 million.

In this crisis and emergency, insurance agencies are flooded with claims made by thousands of New Zealanders impacted by weather events. Fortunately, in NZ, unlike many countries, insurance does cover all risks, including extreme weather events, be it earthquakes, tsunamis, storms or cyclones and resultant flooding and slips.

Indian Weekender spoke to Christian Judge, spokesperson of the Insurance Council of New Zealand Te Kahui Inihua o Aotearoa (ICNZ), to know how they are dealing with this unprecedented situation and what his advice is to people impacted by the recent extreme weather events.

ICNZ is the industry body representing most insurance companies operating in NZ. Its primary role is to promote and protect the insurance industry's interests and support its development and growth in NZ. It plays a vital role in representing and promoting the interests of the NZ insurance industry and ensuring consumers have access to quality insurance products and services.

To begin with, Judge assures that ICNZ is fully prepared for claimants and their numerous claims that are being made in the wake of these weather events, especially Cyclone Gabrielle. "An estimated 40,000 claims are already being handled by NZ insurers, with dates ranging from January 27 to February 2 (Auckland anniversary weekend). This is just a reference figure as these numbers are growing, and we expect them to grow as people are better connected and in a situation to lodge claims.

“We don't have a handle on exact figures, but we safely say it will run into the hundreds of millions of dollars. We acknowledge and understand that, at present, many people have not lodged claims, given the lack of electricity, telephone and internet services affecting many communities. We will stand with all affected New Zealanders until the job is done,” says Judge.

Judge further says that ICNZ is working relentlessly with all available staff on hand to get on with accepting claims. “It is an unprecedented time, but we will get to everyone. We will prioritise those displaced from their homes or needing extra care. We aim to settle most of these claims in a matter of months,” says Judge.

According to Judge, the process may take longer for claimants hit by significant property damage and those requiring demolition and complete rebuilds; also, claimants for which the NZ insurers need to look at the land might take longer to settle.

Advise for those who plan to lodge claims

• Let your insurer know about as much damage as possible. Try to report as much as you can.
• Try to put as much evidence as possible to support your claim, including pictures.
• Contact your insurer as soon as you are able.
• Be sure to begin recovery and loss prevention actions if you have the means to do so safely.
• Prioritise your and your whanau's immediate welfare needs.
• Try lodging your claim online, as it will likely be processed faster.
• People with non-urgent insurance claims unrelated to the flooding and cyclone should delay lodging them.