Kiwi insurers' costs minimal for cyclone

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

Relevant offers

Industries

Air NZ customers defend safety videos Washing machine fires sparks recall warning reminder Commuter rail link between Hamilton and Auckland on city council's radar Tech giant Apple pays $9m tax in NZ - how does that add up? Advertising online not the 'marketing magic' it's said to be Construction litigation specialist launches class action Sir Bob Jones buys ASB Bank Tower for $32m, the latest in a string of owners Westport's mayor off to England to investigate waste-to-energy plant Mad Butcher needs a revamp if it wants to compete - analyst Napier Port workers tested after unplanned venting of methyl bromide

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