Unprecedented flooding and cyclone necessitate international support for claims resolution and cost containment strategies
In the wake of two catastrophic weather events, Gallagher Bassett (GB), New Zealand’s largest Third-Party Administrator, has demonstrated its commitment to supporting local insurers by mobilizing a global task force.
The task force, comprising resources from the United Kingdom, Australia, the United States, and Singapore, was deployed to aid in the aftermath of a 1-in-200-year flooding event and Cyclone Gabrielle, the most significant to hit NZ since 1968.
The weather events, which occurred within the first two months of 2023, resulted in a staggering surge of over 40,000 insurance claims valued at more than $180 million.
Understanding the urgent need for assistance, Gallagher Bassett swiftly activated its global resources to accelerate the claims resolution process, ensuring that insurers received the support required to aid communities in their time of need.
Steven Walsh, Chief Client Officer of Gallagher Bassett New Zealand, shared details about the company’s support strategy and the role played by launching the global task force. He revealed, “Our role in a catastrophe event is to support our clients in their response. We deployed our Event Response Plan, enabling additional resources to be rapidly scaled up to assist clients’ customers with claim triage, make safes, and provide special attention to vulnerable individuals.”
GB’s support extended beyond initial triage. Walsh added, “We utilised our loss adjusters and assessors to ascertain the scope of works, inform reserve values, and aid in the conversation regarding cash settlement or reinstatement. If reinstatement was required, we assisted clients and their customers with supply chain management and project expertise for building and restoration.”
By leveraging its extensive expertise in managing significant weather events in the southern hemisphere for the past two decades, Gallagher Bassett successfully navigated unprecedented claims volumes across the country and is a testament to the value of a global partner.
In addition to addressing immediate weather-related challenges, Walsh also highlighted the need for insurers to prepare for future weather events and adapt to the changing insurance landscape. He warned, “As the effects of inflation continue to shape the industry, cost-containment strategies have become essential for insurers to ensure the sustainability of their businesses.”
Gallagher Bassett urges insurers to be proactive in their preparations by questioning the readiness of their businesses to respond to severe weather events and implementing robust cost-containment strategies. The company’s claims experts stress the significance of data utilisation in informing decision-making, as well as the benefits of partnering with Gallagher Bassett to access specialised expertise and customised solutions.
Looking ahead, Walsh emphasized the ongoing recovery process in New Zealand. While initial triaging and scoping of claims have been completed by most insurers, the bulk of the reinstatement work is yet to commence. He explained, “Displaced individuals and households still face challenges, with accommodation benefits running out and the need for long-term solutions becoming increasingly urgent.”
Moreover, the issue of “managed retreats” and infrastructure development poses further complexities for customers and insurers, requiring cooperation between Councils and the Government to address the magnitude of the situation.
As Gallagher Bassett and the global task force continue their efforts to support New Zealand insurers and communities, their proactive approach and expertise are set to play a vital role in the ongoing recovery and resilience-building process.
Steven Walsh, Chief Client Officer at Gallagher Bassett New Zealand, has over 25 years of industry experience working in senior managerial roles at publicly listed financial services companies. Steven’s extensive skillset includes general management, national leadership, product management, sales and distribution of banking and financial services in the New Zealand market.