New Zealand’s insurance and banking sectors are rolling out operational and financial measures as multiple North Island districts remain under states of emergency following days of heavy rain and flooding.
The Insurance Brokers Association of New Zealand (IBANZ) says its members are available to work with clients as weather-related states of emergency have been declared across five North Island districts. IBANZ chief executive Katherine Wilson noted the strain on communities dealing with damage to homes, farms, and businesses. “This will be a very worrying time for those affected and our thoughts are with them,” Wilson said. Around half of New Zealand’s general insurance business is placed through brokers, meaning intermediaries often help policyholders interpret cover, lodge claims, and manage interactions with insurers during large-scale events.
Wilson said brokers can assist clients to work through policy wordings and claims steps when conditions remain uncertain. “Your broker can help relieve stress in times like this by reviewing your policies, clearly explaining the coverage you have, taking care of the paperwork to lodge a claim, and advocating on your behalf to ensure a fair outcome,” she said. IBANZ said insureds who arranged cover through a broker can contact them for guidance on the claims process and required documentation. A searchable register of IBANZ members is available for customers who are unsure how to contact their broker.
For insurance professionals, the event has drawn attention to early loss assessment and mitigation obligations under many property and business interruption policies. IBANZ has outlined a basic checklist that brokers can reinforce with clients as access to affected properties becomes possible. Policyholders are being asked to first determine whether it is safe to enter any damaged premises before attempting to inspect or recover property.
Customers are advised to record the condition of buildings and contents with photographs and video, including both exterior and interior damage. Compiling an itemised list of damaged or destroyed assets can support future loss adjustment and structure discussions with claims handlers. Brokers are also reminding clients of policy conditions requiring reasonable steps to prevent further loss. Where it is safe and practical, this can include tarping exposed areas, moving undamaged items to secure locations, and undertaking essential temporary repairs. Receipts for emergency purchases and urgent repairs should be retained, as they may be considered under applicable policy terms.
Banks are moving in parallel with the broking sector by setting out financial measures intended to address short-term cash-flow pressures while insurance claims are being assessed and settled. BNZ has announced measures for customers in areas where a state of emergency has been declared, including the option to review home lending facilities on a case-by-case basis. The bank has made temporary personal overdrafts available for customers needing access to funds while they wait for insurance settlements, subject to standard interest rates and credit criteria.
For small businesses, BNZ is offering overdrafts of up to $10,000 with no application fee. Agri, business, and commercial customers may be able to access temporary overdrafts of up to $100,000, also with no application fee. Standard interest rates and credit criteria apply across these facilities. “We understand that some of our customers may be facing unexpected challenges to their homes, businesses, and communities as a result of the storm. We are offering practical support to help relieve some of the pressure during this time, so people can focus on the clean-up and recovery. We also have a range of other options available, especially for customers who are facing hardship, so I encourage people to get in touch so we can see how we can help,” Karna Luke, BNZ executive for customer products and services, said. BNZ PremierCare Insurance policyholders who need claims assistance are being referred to IAG NZ by phone or through an online claims channel.
ASB has set out several options for personal, farming, and business customers affected by the severe weather and concerned about their finances. Support will be determined case by case, with options that include deferring loan repayments for up to three months or moving to interest-only repayments for three months. ASB is also considering requests for emergency credit card limit increases and is providing access to working capital of up to $100,000 for eligible business and rural customers.
ASB has temporarily closed its Masterton and North City branches, while its Lambton Quay branch is open with reduced staffing. Other branches remain open, with customers advised to check the bank’s online branch locator for current hours and locations. Personal customers seeking assistance can contact ASB’s call centre or email the bank’s hardship address, while business and rural customers are being directed to their relationship managers or the business support line.
The financial sector response is occurring as the national weather bureau continues to warn of further flooding risk for parts of the North Island after days of heavy rain that have caused power outages, road damage, and evacuations. Thousands of properties have experienced power loss, and local authorities have reported fatalities and widespread disruption. For insurers, intermediaries, and loss adjusters, the event is expected to generate significant volumes of domestic, commercial, rural, and motor claims. Market participants are focusing on early engagement with clients, thorough documentation of losses, and coordination with banks and other financial institutions to support recovery efforts in the affected regions.
