Timaru storm ranks as third most expensive this century - Insurance Council

Large hail stones caused extensive damage in Timaru and surrounding areas in November last year. Photo / Luke McGoldrick

Severe weather events cost insurers $118.8 million last year, with the Timaru hailstorm on November 20 ranking as the third most expensive this century, according to provisional data from the Insurance Council of New Zealand.

The Timaru event cost $83.3m, compared with the February 2004 storms of the lower North Island, which cost $148.3m, and Cyclone Debbie in 2017, which cost $91.5m.

"What was looking to be a benign year for extreme events changed in the last few months when we saw some extraordinary losses emerge from unexpected quarters confirming the value of insurance to cover the unforeseen," Insurance Council of New Zealand chief executive Tim Grafton said.

The results make 2019 the sixth most expensive year since 2010, with insurers paying more than $1.2 billion for weather-related loses during the decade.

The council said 2017 was the most expensive year for severe weather events, with the total coming in at $246m.

"The destructive power of hailstorms is seldom experienced, but the Timaru event on November 20 showed us the fierce effect of these storms when concentrated on urban areas," he said in a statement.

As a result of this storm, motor vehicles drove the highest number of claims in 2019, with 9771 vehicle claims resulting in $56.4 million paid to customers.

Large hail stones on November 20 caused extensive damage with close to 9500 claims for damage to vehicles. Photo / Roselyn Fauth

Close to 9500 of these claims were for hail-damaged cars in Timaru. House and contents claims were the second largest, with 6211 claims costing insurers $29.6m.

Looking at the top five events since 2000, Grafton said the figures reinforced the increasing frequency and severity of storms in New Zealand.

"With climate change we will see an increase in the frequency of extreme weather events," he said.

"Since 2014 we have seen a significant increase in events causing damage in the hundreds of millions," he said.

"The need to adapt and take steps reduce risk is supported by wider climate research," Grafton said.

One scenario put forward by the Intergovernmental Panel on Climate Change project a global mean sea-level rise from 0.43m to 0.84 metres by 2100.

Grafton said this meant New Zealanders could expect to see increased instances of damage to property as a result of extreme tide-storm events.