The spring storms that swept across New Zealand in October have left a trail of destruction, particularly in rural communities on the South Island. More than 3,300 claims have been lodged with major insurers, including IAG’s NZ brands AMI, State and NZI. Mutual insurer FMG - a major player in the rural space - has alone received more than 2,600 claims from its insureds. These losses, said a spokesperson, are expected to cost over $20 million. Meanwhile, brokers and insurers are continuing to work through claims and help with recovery work.
One focus area of these insurance losses is the North Canterbury area. Spring storms are not uncommon in this region and across the country, but insurers and other stakeholders say the severity of October’s weather was exceptional.
Focus of operations: North Canterbury
“The severe winds have caused widespread damage to rural properties, infrastructure and significantly disrupted farming operations,” said Jacqui McIntosh, head of claims strategic operations at FMG.
The claims pouring in have reflected the diversity of rural operations.
“We’ve seen irrigators twisted and destroyed,” she said. “Power outages have disrupted business - milk collection and cooling have been disrupted, and there’s significant damage to local infrastructure like powerlines.”
McIntosh described the damage on rural properties as both extensive and varied, with claims for damaged roofs, farm buildings, homes, vehicles and fencing. Much of the damage was caused by the strong winds. “Damage is largely wind-related - broken windows, collapsed sheds, damaged fencing and destroyed irrigation systems,” she said.
Critical infrastructure damage: irrigation systems
One of the most serious issues for farmers, insurers and brokers is the destruction of irrigation systems, vital for farming operations, in North Canterbury and beyond.
“We know there are a number of irrigators damaged, mainly in North Canterbury,” said McIntosh. “We’re working with irrigation companies, such as WaterForce, who are flying in irrigator build crews from Australia, and they’ve placed orders with manufacturers already.”
However, even with insurance professionals doing what they can to make things happen as quickly as possible, McIntosh said getting this critical farming equipment back up and running can take some time.
For farming operations and their insurance partners, from brokers to mutuals like FMG, the coming weeks will involve careful navigation of the recovery process.
