Kiwi insurers' costs minimal for cyclone

JASON KRUPP
Last updated 05:00 19/12/2012

Relevant offers

Industries

Pornhub's whale advocacy won't actually help the whales all that much Bell Tea buys Christchurch's Hummingbird coffee company SkyCity convention centre deal starting to pay off 4500 new homes in latest announcement of Special Housing Areas Solid Energy has decision "pending" on whether to close Stockton Sex-tech entrepreneur Cindy Gallop says NZ could 'clean-up' in industry Emirates releases Auckland to Dubai pricing Petrol prices drop for second time this week to lowest in more than a year Wine company Indevin snaps up Winegrowers of Ara vineyards in Marlborough Highest rental returns found in Gisborne, realestate.co.nz survey finds

Kiwi insurers are likely to dodge the worst effects of Cyclone Evan, which slammed into Fiji and Samoa earlier this week.

The island nations are only now beginning to tally the widespread damage.

Insurance risk expert John Sloan said the exposure was limited by a law requiring businesses and property owners in Fiji to secure cover with Fijian-based insurers, and any coverage over Samoa would be minimal. However, he expects some New Zealand-based firms with tourism businesses in the two nations will wear some of the storm's effects.

Insurance Council chief executive Tim Grafton said big Australian insurers might have some exposure to Cyclone Evan-related claims, but while devastating, these would pale next to the costs from the Christchurch earthquake.

Investors also appeared to be factoring in a minimal impact on insurance company earnings, with Tower's share price largely unchanged at $1.85 so far this week, while big Australian insurer Suncorp Group rose 1.6 per cent yesterday to A$10.16.

Ad Feedback

- BusinessDay.com.au

Special offers

Featured Promotions

Sponsored Content