News Non-Life07 Dec 2017

New Zealand:Record Nat CAT losses to push up premiums

07 Dec 2017

Insurance premiums are expected to rise after a record NZ$242 million (US$167 million) in weather-related claims this year due to the effects of climate change.

Insurance Brokers Association chief executive Gary Young said commercial premiums could rise more than residential premiums, but both may go up, according to a report in stuff.co.nz.

The Chief Executive of the Insurance Council of New Zealand, Mr Tim Grafton, said the NZ$242 million in insurance losses were a "clear sign of the impact climate change is having on our country".

"As time goes on, we expect to see more of these sorts of extreme weather events occurring."

The weather events included several large-scale floods, fires and cyclones. The most damaging event of the year was the remnants of Cyclone Debbie, which forced the evacuation of Edgecumbe in April and prompted more than 5,400 claims worth NZ$91.5 million. That was followed by flooding in the North Island in early March and in the South Island in mid July.

By comparison, last year's extreme weather cost NZ$42.6 million for insurers.


 

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