Benign weather sent the New Zealand insurance industry’s average combined operating ratio to a record low of 78.56% last year.

The figure was down from 97.92% in 2023 and was the lowest result since 1996, when data started being collected, an Insurance Council of New Zealand spokesman told insuranceNEWS.com.au.  

Across the past five years, the industry’s average combined operating ratio was 87%.

Gross claims incurred last year came to $NZ4.63 billion ($4.17 billion), less than half the $NZ9.23 billion ($8.56 billion) recorded a year earlier.

“It has been a year of recovery for many New Zealanders still dealing with the aftermath of Cyclone Gabrielle and the North Island floods in 2023,” ICNZ president Amanda Whiting said.

Industry gross written premium rose to $NZ10.79 billion ($9.71 billion) last year from $NZ9.93 billion ($8.94 billion) in 2023.

Meanwhile, IAG New Zealand says the number of significant storm claims it received fell to 2868 in September-February from 6712 a year earlier, amid settled spring weather.

A storm that caused flooding in the Otago region last October accounted for 37% of the storm claims.

The number of total hazard claims in the period fell to 3536 from 7844 a year earlier.

ICNZ’s annual review can be found here.