Kiwi insurers' costs minimal for cyclone

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

Relevant offers

National business

The map with pins on it: A symbol of everything businesses in Seddon and Ward have lost since the earthquake Affordable and social housing to be built on Auckland's Point England Reserve Warning Christmas could increase 'mind-blowing' $3500 per capita personal debts New Zealand's loneliest petrol station? Awakino service station in Taranaki on the market Volunteer convoy rescues 160 camper vans and cars from Kaikoura Movement therapist wants New Plymouth to align itself with wellness No $630 million expressway in Wellington region's stocking this Christmas Palmerston North City Council chief executive Paddy Clifford resigns A clothing trade career lasting more than half a century comes to an end for 'Mr Uniform' Broadway business booming

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