IAG and Suncorp face thousands of claims from the Auckland flood disaster

Insurance Australia Group and Suncorp are facing thousands of claims over the flood disaster in New Zealand’s largest city, which has caused both insurers’ shares to fall amid fears of the cost of natural disasters.

IAG shares tumbled 3.4 percent to $4.90 on Monday, while Suncorp tumbled 1.8 percent to $12.58 as both companies tweaked the market on the number of flood and storm damage claims so far in the area informed from Auckland.

The city was placed under a state of emergency following flash floods and landslides, with four people losing their lives in the disaster.

IAG chief Nick Hawkins said the safety of its customers and communities remains the insurer’s top priority. The company has received over 5000 claims from New Zealand through its insurance brands AMI, State and NZI. This number is expected to increase in the coming days.

“The tragic loss of life and the vision of damage to Auckland is devastating,” Hawkins said in a statement to the ASX.

“Our Major Event Response team has been supporting customers with temporary housing and other emergency support since Friday night. We have a large team ready to help people with their applications and we will be deploying our assessors to the affected areas on the ground as soon as it is safe to do so.”

Suncorp said it received more than 3,000 claims through its Vero and AA Insurance brands and also expects that number to increase.

“We are aware that more rain is expected in the days ahead and that there are reports of damage outside of Auckland,” Suncorp Chief Executive Steve Johnston said in an ASX announcement.

“Our thoughts are with our New Zealand customers during these difficult times. We encourage them to assert their claims as soon as possible.”