Insurers have settled 96% of Auckland Anniversary and Cyclone Gabrielle claims: ICNZ

Insurers have settled 96% of all private insurance claims from the Auckland Anniversary weekend and Cyclone Gabrielle weather events, the Insurance Council of New Zealand (ICNZ) said on Wednesday — approximately 16 months after these significant natural disasters.

As of 1 June 2024, 112,746 of the 118,037 claims have been settled, which has an estimated total cost of NZ$3.8bn (US$2.26bn).

NZ$1.72bn has been paid for the Auckland Anniversary event claims, approximately 87% of the estimated insurance cost of NZ$1.98bn. For Cyclone Gabrielle, NZ$1.53bn has been paid to date, representing around 84% of the estimated cost of NZ$1.84bn.

“The sizeable number of claims has reflected the severity of the events and its impact has been complex and challenging, including dealing with land claims under the Earthquake Commission Act and the council-led categorisation process, which have affected the timing of resolving claims,” said Kris Faafoi, Chief Executive of the Insurance Council of New Zealand.

The ICNZ chief also compared the progress of the current settlement pace with previous events.

“It took four years after the first Canterbury earthquake, and nine months after the Kaikoūra earthquake, just to get over 50% of claims fully settled. The pace of settlement rates from last year’s weather events shows insurers have been extremely effective in supporting their customers and providing confidence about the future.”

“Insurers have made significant progress in getting claims settled into the high 90’s range and provide certainty to those affected to get on with their lives,” Faafoi added.

Regarding individual insurance lines, contents claims have nearly reached a full settlement, with 99% progress and NZ$264.57m paid out of an estimated NZ$267.20m. Residential house claims have reached a 96% settlement rate so far.

According to the ICNZ’s numbers, motor claims have exceeded the estimated cost, totalling NZ$221.42m compared to an original estimate of NZ$215.32m. Marine claims show a high settlement rate of 97%, with NZ$6.04m paid out of an estimated US$7.35m.

“So far, NZ$3.3bn has been paid out by insurers to get families and whanau back on their feet and keep people and businesses in work to repair and replace what has been lost,” said Faafoi.

“The industry is working hard to support customers and finalise the remaining claims and provide certainty for those affected as quickly as possible. We encourage people to keep in contact with their insurer about their claim,” Faafoi concluded.