Insurance industry loss estimates stemming from Cyclone Gabrielle have risen to NZ$1.925 billion, as per the latest report from insurance data provider PERILS. This new estimate is 25% higher than the previous figure of NZ$1.543 billion which was issued by PERILS at the end of March.
PERILS Asia Pacific head Darryl Pidcock said that the significant rise comes from the increase in average claims size in both residential and commercial property lines.
“We have observed an increase in the industry loss by 25% since our first loss report. This is a significant increase and mainly driven by an increase in average claims size across residential and commercial property lines. Whilst the damage of the preceding North Island flood was focused on Auckland and surrounding urban areas, Gabrielle’s impact was more widespread and had a greater impact on rural areas. New Zealand has, to date, experienced nearly NZD 3.7 billion in insured losses from the two events, which is by far the highest in recorded history for weather-related events in the region,” Pidcock said.
Earlier this month, PERILS also released updated loss estimates for the North Island floods which put the new figure at NZ$1.754 billion. Compared to the new estimates for Cyclone Gabrielle, this one is only 6% higher than the previous estimate.
A third update from PERILS will be released on Aug. 17, six months after Cyclone Gabrielle’s event end date. This one will include industry loss footprint as well as losses broken down by postcode zones and property line of business.
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