Rural New Zealand insurer Farmers’ Mutual Group (FMG) has announced that it has paid out more than $120 million in claims related to Cyclone Gabrielle.
Of the 10,500 claims relating to Gabrielle and the Auckland floods, FMG confirmed that it has already settled 43% of the combined claims number. In total, it still has nearly 6,000 more claims from the two events to resolve.
According to a report from RNZ, these claims cover damage to everything from homes and farm buildings, to irrigation, agricultural vehicles, and animal and crop losses. FMG chief client officer Glenn Croasdale said that progress was now steady due to the completed categorizations by the government based on future risk.
“People need certainty, and whether that's the outcome they want or not, at least they are able to know how to move on. But I know there's still more hurdles to cross there,” Croasdale said. “They can now work with the council, the government and then also their insurance, and that's helping us to now be able to progress some of these claims that otherwise would be sitting in limbo.”
As councils across Aotearoa start to engage with category two or three property owners, Croasdale expects a further acceleration in the insurance process.
“We continue to keep in touch with our clients to ensure that they know where things are at and what's in our control or outside of our control,” he said. “There's the opportunity for them to engage with their council and I know that councils are now starting to engage directly.”
Croasdale added that the twin events’ claims were more than that of the Kaikōura and Canterbury earthquakes combined, and that the total cost for the insurer would be at $273 million.
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