Data from the Insurance Council, released Friday, showed the March floods – which devastated much of the upper half of the North Island – cost nearly $120 million.
That was nearly 50 percent higher than the preliminary costs reported earlier this year.
Preliminary claims for last month’s storms, which ravaged the North and South Islands, are already $15.5 million.
Those numbers exclude this month’s wild weather, and preliminary data for those flooding and storm events should be available as of late August.
Last year was the most expensive ever for extreme weather events, with insurers paying $324 million.
“Communities are going through another difficult year,” said Tim Grafton, chief executive of Insurance Council.
“While we cannot say for sure that we will see a new record high for extreme weather claims in 2022, it is a steadily increasing trend in climate-related insurance costs in Aotearoa and abroad.”
The trend put pressure on insurers and homeowners.
More frequent and severe extreme weather events coupled with rising construction costs and ongoing supply chain constraints contributed to insurance premiums, Grafton said.
The cost of reinsurance – insurance for insurers to cover very large-scale events – also increased.
The private insurers of Aotearoa, New Zealand and EQC, bought reinsurance from companies worldwide, which themselves saw record losses related to the climate.
“Insurance only transfers risk, but doesn’t reduce it. Communities must now act through local and central government to rely on local risks, such as flooding, sea level rise, drought or wildfires,” Grafton said.
“Investment in natural and man-made measurement tools is needed to maintain risk at a level where insurance is affordable in the medium to long term for both homeowners and insurers.
“Fortunately, some communities have been spared even greater damage as some flood defenses are performing reasonably well, albeit close to their limits.
“However, they will have to wonder whether that will continue if the current trend of intensifying extreme events continues.”