PERILS pegs New Zealand floods at $1.02bn at first glance

Flooding in the North Island of New Zealand between January 27 and February 2 likely rendered NZ$1.65 billion ($1.02 billion) in insured losses in property lines of business, the Swiss-based nat cat counter PERILS said in its initial tally for the event.

Extreme rainfall over the four day period caused “the costliest weather event for the region’s insurance industry to date” on “severe inundation” across the greater Auckland region and surrounding areas on the North Island of New Zealand, PERILS said.

The initial estimate is based on early loss data from the majority of the New Zealand insurance market, Perils said. The first update to the estimate will be made available on 2 May 2023, three months after the event end date.

The head of PERILS Asia-Pacific, Darryl Pidcock (pictured), commented: “This event is unprecedented being the largest weather-related insurance industry loss historically for New Zealand. It is the third largest Cat event for the sector, only surpassed by the Canterbury Earthquakes of 2010/11 and the Kaikoura Earthquake of 2016. In addition, Cyclone Gabrielle passed through the North Island region only ten days after the North Island Floods, causing considerable damage and leaving many people homeless. For two such extreme weather events to occur within such a short period is unprecedent in New Zealand’s recent history and will test the industry’s existing understanding of these perils.”

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