Navigate Any Storm: GB’s Guide to Your Cat Weather Event Response

As we pass the one-year anniversaries of the catastrophic floods in Auckland and Cyclone Gabrielle, it is an important reminder to reflect on the insurance industry’s preparedness to respond to similar events. As everyone keeps saying, we are one day closer to the next event.

As we pass the one-year anniversaries of the catastrophic floods in Auckland and the impact of Cyclone Gabrielle, it is important to reflect on the unprecedented challenges presented by these different natural disasters. The combined impact of these events has left an indelible mark, with the total cost of damages surpassing any weather event recorded since 1960. In the wake of such significant losses, insurers are compelled to reevaluate their preparedness strategies for managing catastrophic events and claims surges.

Here, three of our experts delve into the importance of a proactive and comprehensive approach. Read on for insight into how tailored strategies, cutting-edge technology, and collective experience can support insurers to weather the storm and emerge resilient in the face of future events.

CAT claim surge preparedness - Steven Walsh, Chief Client Officer:

For insurers, it’s important to take stock of how severe weather events have impacted insurance providers globally to inform a robust recovery strategy for their business. While the practice of reviewing CAT response plans is well established, the lesson was brought to the fore again last year in the aftermath of the Auckland floods and Cyclone Gabrielle. With some distance from the catastrophic weather events of early 2023, it gives the industry a collective chance to revisit its preparedness and eventual response to the event and take stock of the learnings that come from each different event and conduct a comprehensive review of CAT event response plans and processes.

A key way insurers can get prepared now is to conduct regular testing, evaluation, and adaptation of CAT claim surge plans – this is critical for identifying weaknesses or areas requiring improvement. Critique the performance of your own claims team and their ability to flex and respond, as well as your supply chain partners and their response and performance, to ensure that their capability and capacity meets your needs. Remember that it is the combined response from all the parts that the customer experiences. Some areas for review also include an assessment of claims management technology, looking to understand its capacity to handle increased workloads. In the course of these reviews, it may prompt the need to review technology or partner with a provider that offers advanced data analytics platforms. While technology is invaluable, human contact remains crucial—particularly in the aftermath of a disaster when empathetic, transparent, and supportive communication is vital for ensuring customer satisfaction.  Review your complaints. By doing so you will get insights as to where you need focus, as you should always remember that these will only represent a small sample of dissatisfaction experienced by your customers. In our experience, customer communications will be at the heart of many of those concerns expressed, and a learned experience that needs to be built into the next event response in terms of an area that requires more focus.

Learning from experience is paramount in refining tried-and-tested surge plan. Continuous refinement based on experience ensures its adaptability to evolving demands and claimant expectations.

Another key aspect of ensuring readiness for a surge event involves confirming the presence of a dedicated catastrophe or crisis management team. This team should have proven capability in technical expertise, scalability, and the rapid deployment of operational teams. This aspect of preparation was put to the test last year in Gallagher Bassett’s (GB's) response to the twin catastrophes of the Auckland floods and Cyclone Gabrielle hitting within a week of each other. The unprecedented nature demanded a unique response and saw us tap into global partners in Australia, the United Kingdom, United State and Singapore. This worldwide emergency-recovery team supported claims resolutions and delivered rapid recruitment for timely and seamless service to clients.

The agility to scale on a global level may not be available to some, so a strategic review of strategic partners against their ability to scale at short notice is imperative to supporting overall preparedness efforts.

Ensuring property adjusting excellence - Tim Allan, Operations Manager - Project Management & Loss Adjusting:

Property adjusting is the linchpin of any response to catastrophic weather events for the insurance industry. The ability to assess, quantify, and respond swiftly to property damage is essential for restoring normalcy to policyholders' lives and minimising financial losses. Last year, the volumes of property, contents and motor claims associated with the Auckland floods and Cyclone Gabrielle were felt by many insurers, who were able to lean on GB’s operational strategies, expertise and disaster response to deliver timely outcomes for the New Zealand community. By investing in a robust property adjusting framework, insurers can effectively navigate the challenges posed by claims surges during catastrophic events, providing timely and efficient support to claimants.

At GB, our approach to property adjusting supports the resilience and effectiveness of responding to catastrophic weather events and the subsequent surge in claims. Recognising the complex challenges posed by such events, our team of highly qualified adjusters are strategically positioned throughout the country and equipped to handle diverse property damages arising from wind, water, fire, and other hazards. Their expertise extends beyond adjusting, with many holding specialised qualifications, including Licensed Building Practitioners (LBPs), ensuring a nuanced understanding of intricate building scopes and the management of large-scale projects.

Our commitment to a swift response is embedded in our dedicated catastrophe response teams, pre-trained to mobilise rapidly and efficiently. This capability ensures an immediate on-site presence, facilitating emergency repairs and providing policyholders with the support they need in the aftermath of a catastrophe. Our property adjusters leverage the latest technology tools, whether it be utilising customer smartphones for desktop adjusting, putting drones in the air to assess damage or providing 3D renderings of properties, they are all designed to make adjusting easier and faster at claim time and to enhance the customer experience. Moving beyond the field tools, we utilise  our award-winning claims management platform, Luminos, to streamline processes, enhance communication, and make data-driven decisions. This integration of technology not only expedites the claims process but also enables us to handle the increased workload associated with surges in claims during catastrophic events.

Strategic EQC management - Todd Niccol, Operations Manager - Natural Hazards

Now collaborating with New Zealand's private insurers under the Natural Disaster Response model, GB has been a long standing trusted partner in managing EQCover claims for the Toka Tū Ake Earthquake Commission (EQC). Our comprehensive approach encompasses end-to-end claims solutions, leveraging the expertise of our nationwide team of land specialists. Whether it's navigating business as usual EQCover claims, responding to specific events, or managing the aftermath of a natural catastrophe, GB is adept at handling the complexities inherent in EQCover claims.

At the forefront of our EQC response is one of the largest EQC-accredited and specialised land adjusting teams in New Zealand. Drawing from substantial experience in managing EQCover claims for major catastrophes such as the Canterbury and Kaikoura earthquakes, previous Auckland and West Coast floods, and more recently the weather events of 2023, as well as smaller events causing land and property damage, GB has consistently provided expertise, service, and support to those affected. Our nationwide team of over forty plus EQC-accredited land specialists brings a wealth of experience and a commitment to delivering exceptional quality service to our clients and their customers.

GB's expertise in EQCover extends beyond our team of experts to include bespoke loss adjusting solutions, smartphone technology, and cutting-edge field tools such as drones and surveying technologies. These resources provide our clients with direct access to relevant data 24/7, enhancing the overall claims experience. Our nationwide presence and global business insight uniquely position us to understand the intricacies of responding to catastrophic events throughout New Zealand and Australia. Compliant with EQC Data and Reporting Requirements defined by EQC as part of the Natural Disaster Response Model, our systems ensure a seamless and regulatory-compliant claims process. The amalgamation of these factors allows clients to operate a variable cost model, control overall operating expenses, and avoid capital requirements—all while delivering superior outcomes for both insurers, EQC and to the insured customers.

Contact us to find out how our team of specialists can support you through storm season.