Kiwi insurers' costs minimal for cyclone

Last updated 05:00 19/12/2012

Relevant offers

National business

Should you be splitting your mortgage? Fonterra blindsided as nineteen arrested in China over milk powder scam Sue Allen: Jury is out on customer feedback rankings Research shows hope for Maori women's money lives. Cleaning product company The Green Stuff listed for sale with $1 reserve Galaxy Note 7 recall: More than 500 sue Samsung for $616 Travellers share their best New Zealand fine dining picks in TripAdvisor awards John Key's plane is grounded in Australia until a replacement plane arrives to head on to India Elderly woman still owed thousands by painter AJ Hackett to open new "world's highest bungy" - in China

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


Special offers

Featured Promotions

Sponsored Content