Insurers Report Soaring Climate-Related Claims in New Zealand
What happened
Insurers are reporting that claims for storms and weather events have doubled or tripled for many companies in the last financial year. Tower Insurance noted that large event claims costs totaled about $25 million in the year ending September 30, compared to $7.2 million the prior year. Vero reported weather-related natural hazard claims reached $185 million in the year ending June 30, which is more than double the previous year's $70 million.
From odt.co.nz
Why it matters
The increasing exposure of homes and businesses to climate change-related extremes has prompted major underwriters to warn the government that greater action on climate adaptation is required. This trend indicates a significant rise in risk exposure for the insurance industry.
From odt.co.nz
Who's involved
- TOWERReported large event claims costs and is a major underwriter in the insurance sector.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- TOWERSpeculative
Could see increased operational costs and risk exposure due to rising climate claims.