KEY POINTS:
Damage caused by the massive snowstorm in June generated insurance claims totalling about $42.5 million, making it the most destructive winter blast New Zealand has seen, the Insurance Council said today.
Chris Ryan, chief executive of the council, described the figure as a "conservative estimate", based on claims already paid out by insurance companies.
The snow arrived on June 12 and was the deepest Canterbury had seen since 1945. Power was cut to more than 10,000 homes -- some of them for up to 18 days.
Mr Ryan could not say exactly how many claims that represented, but that it would be in the "tens of thousands".
The claims covered damage to domestic and commercial properties, business interruption, marine property, motor vehicles, and crops.
"It was the most damaging snowstorm that New Zealand has experienced and the Insurance Council has paid out on," Mr Ryan said. "It eclipsed any other snowstorm we have had."
The most expensive event in the council's history was the Edgecumbe earthquake in March 1987, with payouts totalling $300 million.
The Manawatu floods in 2004 cost insurance companies $112 million.
Mr Ryan said 2006 was one of the most expensive winters in decades for the insurance indsutry.
There was extensive flooding in both the North and South Islands, a number of landslips because the ground became waterlogged in many parts, and the big snowstorm.
Whether future insurance premiums would be pushed up remained to be seen, he said the international insurance market played a significant part and the New Zealand claim was small in relation to things like Hurricane Katrina.
AMI chief executive officer John Balmforth said yesterday that the company had received 3800 claims for snow damage from Canterbury policyholders, with most of the $6 million of damage being in Timaru and Ashburton.
The previous largest weather event for the company was the Manawatu floods which generated 2600 claims, although the overall value was greater than for the snow.
Mr Balmforth said about half the repairs for snow damage had been completed, with the rest being carried out in the next three to four months.
- NZPA
