New Zealand’s weather is a topic that has recently turned from polite conversation to a much more urgent discussion around the need to take action to keep New Zealanders safe.
Part of our mission at NZI is to provide New Zealand businesses with peace of mind so they can focus on getting on with business. One of the ways we do this is through NZI’s Wild Weather Tracker - a six-monthly analysis of our weather-related claims data (in conjunction with AMI and State).
With costs increasing across the construction industry, weather-related events on the rise, and customers seeing the resulting increase in the amount they pay for insurance, our report offers insights, commentary, and advice that you can pass on to your clients to help them plan for and minimise damage to their business.
You can download the Wild Weather Tracker from our website and read on for some of my key takeaways.
What our data tells us
Our latest edition tells us that severe weather in New Zealand is becoming more frequent and causing more damage to people’s homes and businesses, with a staggering 13,587 weather-related claims in the past six months alone, up 34% from the same time last year.
Between March and August 2022:
• we recorded 11 significant weather events
• Auckland suffered most of the property damage, with 37% of all weather-related claims
• house policies made up most weather-related claims (8,710), followed by contents (1,971), and commercial policies (1,851).
We also asked New Zealanders what they thought about our weather and changing climate, and if they were prepared for a storm.
• 82% believe wild weather is increasing in frequency and severity
• 71% agree climate change is a key contributor to wild weather
• 69% of people are concerned about the potential impacts of wild weather
• 40% have taken precautions to prepare for wild weather in the past six months
• 42% are either not at all prepared or only a little prepared for a storm.
As we were pulling together this second issue of our Wild Weather Tracker, our teams were responding to the flooding and devastation in Nelson, Tasman and Marlborough.
The aftermath of this event showed a huge amount of resilience from the local community and emergency responders, working together to clear away the debris, as well as by our claims and service teams, who helped customers lodge claims, find alternative accommodation, and arrange property assessments.
To date, NZI, AMI, and State have received 1,716 claims for this weather event alone and are in the process of paying out around $20 million to customers.
That won’t happen where I live
And before you think ‘that will never happen where I live’, remember that Auckland, too, suffered a major storm in March which flooded homes and businesses, with rain that lasted several days and resulted in 4,799 claims.
And Canterbury made up 10% of all weather-related claims in our latest report, while Wellington contributed for 8%.
Unfortunately, ‘wild weather’ is a topic that is becoming increasingly relevant to us all, regardless of where we live.
Climate change is having a very real and immediate impact
Our data paints a clear picture that despite New Zealanders being concerned and increasingly impacted by climate change, little is being done at an individual, community or government level to help mitigate its effects.
Climate change is a critical issue for our country and it’s having a very real and immediate impact on the lives of New Zealanders, as well as businesses. As recently as a few months ago, RAL Ruapehu Alpine Lifts went into voluntary administration amid a challenging few years of poor weather conditions, including a third year in a row of warm winters, and the Covid-19 pandemic. Unfortunately, I think examples like this will only become more frequent as we see our climate continue to change.
Protecting our communities from flooding
In the short term, one of the most important things that we can do is ensure people are not placed in harm’s way, so they do not suffer the loss and disruption caused by a major event. That means we need to stop building in flood prone locations, so the problem doesn’t get worse.
Currently, development and investment decisions are leading to more people living and working in flood prone locations, where they face growing risks due to the impacts of our changing climate.
Reducing the impacts of flooding is a large and complex challenge, but not an impossible one. There are practical, concrete actions we can take which will lead to a real reduction in the flood risk faced by some of New Zealand’s most exposed communities.
In August, IAG – which NZI is a division of - called for three practical, collaborative steps to be taken which will lead to a real reduction in the flood risk faced by some of New Zealand’s most exposed communities.
I encourage you to read more about our three-step plan, outlined on page 6 of the Wild Weather Tracker.
What your clients can do to prepare
Another insight the Tracker reveals is that despite high levels of concern, awareness, and property damage, people and businesses generally aren’t taking steps to prepare.
This could be because people don’t know how to prepare, or simply hope it won’t happen to them.
It’s important to remember these storms can impact businesses just as much as homes, and there are several things business owners can do to reduce loss from flooding.
Reducing loss from surface flooding
Know the risk:
• It’s unlikely customer’s stormwater infrastructure has been designed to carry away the amount of water that drops during an unprecedented heavy rain event. Water will flow downhill, and even shallow flooding can cause significant damage and interruption to their business.
• Customers should find out where their site’s overland flow paths are (the tracks that water would take if the stormwater system gets overwhelmed) to see where the water is likely to collect.
• Auckland Council has a handy guide on how to recognise these and other local authorities should have similar resources.
Once you know your risk, control it – reduce the impact of surface flooding and protect your customer’s assets. Your clients can do this by:
• cleaning and clearing stormwater grates, gutters, culverts and drains.
• keeping overland flow paths free of obstructions. This allows the system to move water away from your site.
• making sure critical plant and machinery, stock and inventory is away from flood prone areas or elevated off the ground. It’s also worth considering whether they’d be able to access these things during a flood, or whether it’s worth relocating them.
NZI has a range of resources available, and we can work with you to help your clients plan and prepare for interruption to their business. To find out more visit the Risk Solutions area of our website.
