The cost of weather-related insurance claims has increased by over 70 per cent in the past three years alone, an insurance broker says.
With a large storm today making its way down the country, NZbrokers chief executive Jo Mason warned Kiwi small-and medium businesses to do more to prepare for adverse weather events.
Mason said new insurance claims resulting from storms and flooding had increased 56 per cent per in the past three years, accompanied by a significant spike in the cost of claims.
According to industry data for the past 18 months, insurers had paid more than $265 million for 15 serious weather events in New Zealand, the largest being for ex-cyclone Debbie, where $91.4m was paid to Edgecumbe alone.
With New Zealand now ranked as a "high hazard" country for natural disasters by the Global Facility for Disaster Reduction and Recover, it was of particular concern that ocean temperatures were among the warmest on record and global sea levels continued to rise.
"While we were already rated as a high risk for seismic activity, now storm and flood losses in our market are on their radar as well," Mason said.
"At the same time, data from the World Meteorological Organisation is projecting the number of weather disasters will continue until the 2060s."
The figures showed no particular regions of New Zealand were at greater risk more than others, Mason said.
"Weather events may cost less than a serious seismic event but the increasing frequency and geographic spread of events show every business in New Zealand should be prepared," she said.
Much of the country is bracing for a rough 48 hours as a storm packed with the intensity of an ex-tropical cyclone sweeps across the North Island and top of the South Island.
Civil Defence is on high alert as the top of the North Island prepares for a pummelling from ferocious winds, torrential rain and enormous waves.