Insurance industry loss estimates stemming from Cyclone Gabrielle have reached $2.018 billion, according to the latest data from insurance data provider PERILS. This third estimate follows the previous estimate of $1.925 billion in May and the $1.543 billion estimate at the end of March.
This new estimate is based on detailed loss data by postcode and property life of business collected from most of the NZ insurance sector. 54% of the losses stem from personal lines property losses, while 46% goes towards commercial lines.
Cyclone Gabrielle hit the country less than two weeks after the North Island floods in February, an event which in PERILS’ latest estimate cost the New Zealand insurance sector a loss of $1.995 billion. Combined, the twin catastrophic weather events’ insured loss amount now sits at $4.013 billion.
“According to the Insurance Council of New Zealand, the largest industry loss on record from a weather event in New Zealand prior to 2023 was NZD 171 million. The total loss from Cyclone Gabrielle and the North Island Floods, currently estimated at NZD 4,013 million, therefore highlights the extraordinary scale of the two events occurring so close to each other,” PERILS Asia Pacific head Darryl Pidcock said.
“The last six months have been very challenging for policyholders and insurers given two such large events impacting the North Island. We hope the availability of our detailed loss and exposure data can support the industry’s efforts to better understand atmospherical risks as it works closely with policyholders, communities, and government in the recovery of the affected areas.”
An updated estimate of the Cyclone Gabrielle industry losses will be released on Feb. 17, 2024, a year after the event end date.
What are your thoughts on this story? Please feel free to share your comments below.
