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NZ insurers pay out $6.5 million a day

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New Zealand insurers paid an average of $NZ7 million ($6.51 million) a day in claims last year, the Insurance Council of New Zealand (ICNZ) says.

They settled or partially settled a record 70,000 claims, including 39,000 Kaikoura earthquake claims, 25,500 related to extreme weather and 2070 residual Canterbury quake claims.

ICNZ CEO Tim Grafton says the fact that insurers are still receiving “over-cap” Canterbury claims from the Earthquake Commission shows insurers should be the first port of call after such catastrophes.

“Almost 800 claims were transferred in the year,” Mr Grafton said. “The private insurance sector has proved its ability to be effective first respondents to these sorts of events, managing and settling claims quickly and effectively. We believe this is the model for the future.”

The total settlement cost for insurers last year was $NZ2.55 billion ($2.37 billion).