New Zealand insurance market faces losses over NZ$1.5bn from Cyclone Gabrielle
Cyclone Gabrielle, which hit New Zealand in February 2023 just two weeks after devastating floods had affected Auckland and surrounding areas on the North Island, caused an estimated insured loss of NZ$1.543 billion ($960 million).
Perils, the industry-wide catastrophe insurance data provider, has disclosed its initial industry loss estimate for Cyclone Gabrielle based on the data collected from the New Zealand insurance market.
The estimated NZ$1.543 billion loss number covers the property line of business.
Gabrielle brought extreme rainfall and strong winds to the North Island of New Zealand during the period of 11 to 17 February 2023. The impact of the cyclone was amplified as the torrential rain fell on saturated soils from the previous wet weather. Moreover, storm surge and high tides contributed to the catastrophe, which in addition to inland flood and wind damage saw coastal inundation and landslides damaging property and critical infrastructure.
Perils will disclose an updated estimate of the market loss in May, three months after the event end date.
Darryl Pidcock, head of Perils Asia-Pacific, said: “New Zealand has largely been spared from catastrophic weather events in the past 50 years. This makes it all the more unusual that two billion-dollar weather events, first the North Island Floods and then Cyclone Gabrielle, should occur within weeks of each other. These catastrophes represent one of the most challenging periods for the insurance industry since the Canterbury earthquake sequence of 2010/11.”
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