Catastrophe loss data aggregator PERILS AG has provided a second estimate of the insurance and reinsurance market loss from the severe flooding that impacted the North Island of New Zealand from January 27th to February 2nd, pegging the total at NZ $1.75 billion.
On March 15, it initially estimated the insurance and reinsurance market loss of NZ $1.65 billion.
The industry loss estimate is based on data collected from the New Zealand insurance market and covers the property line of business.
Between January 27th and February 2nd 2023 the North Island of New Zealand was hit by extreme rainfall, causing flooding across the Auckland Region and surrounding areas.
The North Island of New Zealand experienced unprecedented floods and Cyclone Gabrielle, causing significant losses for the insurance market. The January floods mainly affected the Auckland Region, damaging many insured properties due to overwhelming rain and drainage capacities. The rainstorms were caused by an atmospheric river colliding with strong easterly winds.
“Compared to our first report, we have observed an increase in the industry loss of 6%. Insurers are not only managing a high volume of claims for this event but face the added pressure of responding to Cyclone Gabrielle claims which occurred less than two weeks after the floods,” Darryl Pidcock, Head of PERILS Asia-Pacific, commented.
“There are added complexities given the overlap in some regions with losses from Cyclone Gabrielle. Notwithstanding, we greatly appreciate the support of our insurance partners during such difficult and challenging times for the industry,” Pidcock added.
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