Feature
Managing bushfires in New Zealand
By Mark Taylor Chartered Loss Adjuster, Major & Complex Loss (MCL) Global Property Team, Sedgwick NZ
B
ushfires are a foreign disaster for New Zealand. Although there have been wildfires in the past, none have been as intense as the recent cases in Australia. The climate in New Zealand is different, and the land isn’t expansive and arid. Towns in New Zealand are often surrounded by farmland rather than bush, making it unlikely for wildfires to spread on the scale and intensity we see in Australia. Very few bushfires in New Zealand cause substantial damage to residential property. However, some affect forested areas that are privately-owned, causing losses for the owners of those assets. In the past five years, there have been two large bushfires that have damaged residential properties. The first was the Port Hill fire near Christchurch, that lasted between February and April 2017. The area was predominantly covered with bush and affected about a dozen residential properties. The second took place in October
18
June 2021
2020 and destroyed almost half of Lake Ohau village. The incident, which was described as one of the biggest wildfires in New Zealand, started in the surrounding bush. Unlike the Port Hill fires, the Ohau fire spread to the village area due to strong winds and destroyed 50 homes in the village. It was the most destructive bushfire in relation to residential property in New Zealand’s history, and the insurance cost exceeded the 2017 Port Hill fires and the 2019 Tasman District fires.
Challenges in managing domestic claims The claims we managed were predominantly domestic losses for damage to residential houses. Few commercial claims were filed.
An essential part of our work as loss adjusters is to coordinate with origin and cause investigators with whom insurers have a good relationship and who, in turn, maintain a good relationship with the fire service. We all share a collaborative approach to investigations, allowing the
required joint inspections with the various parties. This ensures that an accurate record of cause is established. This was the case with both the Port Hills and Lake Ohau fires. The relationship with investigators also allowed some preliminary responses as to the type and scale of damage to be provided to insurers early in the claim review, with access being provided to investigators well before public or loss adjusters could be on site. One challenge we must address as loss adjusters is the emotional aspect to claims. People naturally have a deep emotional attachment to their houses and contents. Therefore, in the event of a total loss, everything that they have accumulated over years disappears, and this, understandably, has a significant impact on people’s lives. Lake Ohau is a good example of this. Although the Ohau area is a tourist and holiday home location, it is also the permanent residence
