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2013 second most costly year for New Zealand weather-related disasters


January 28, 2014   by Canadian Underwriter


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Last year was the second most costly years for weather-related damage in New Zealand, with more than $174 million of insured costs, the Insurance Council of New Zealand reported Tuesday.

“Last year was one of the most costly years for weather losses since the Insurance Council started tracking these losses on a regular basis back in 1968, the year of the Wahine disaster,” Tim Grafton, the organization’s chief executive said in a release.

“The Insurance Council’s members’ losses for 2013 stands at $174 million, but we are still awaiting final figures for the 14-16 October storm where losses provisionally stand at $10.2 million,” he added.

The cost of insured damages in 2013 is second to 2004, which experienced $181 million in insured costs (inflation adjusted at 2011), according to the council. The country also saw $155 million of insured damage in 1984.

The storm last Sept. 11 and 12 caused $74.5 million of insured losses, the third most expensive storm event in the last 45 years, the insurance council noted.

Commercial losses were significant, with $42 million damage to commercial property and a further $3.1 million in business interruption payments. Domestic-related losses amounted to $ 18 million and damage to motor vehicles amounted to $9.5 million.

Other damaging storms occurred in April 2013 when $46.2 million of insured damage was done and in June when $39.3 million worth of insured losses.

“Climate change scenarios point to higher levels of rain in parts of the country already prone to flooding and for stronger winds from the west,” Grafton noted. “This underlines the need for New Zealand to focus on pre-disaster mitigation and adaptation strategies to minimise economic losses and social disruption.”


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