What farmers learned about livestock insurance after Cyclone Gabrielle. How to make sure your livestock cover protects against floods, cyclones, and extreme weather.
Cyclone Gabrielle: A Watershed Moment for NZ Livestock Insurance
In February 2023, Cyclone Gabrielle devastated Hawke's Bay and Gisborne, killing an estimated 3,000+ cattle and thousands of sheep. For many farmers, it was the first time they discovered their standard livestock mortality policy didn't cover weather-related deaths.
Why Standard Policies Often Don't Cover Natural Disasters
Most base-level livestock mortality policies exclude:
Natural disaster cover is typically sold as an add-on to base mortality cover. Farmers who hadn't purchased this add-on found themselves with limited recovery options after Gabrielle.
What Natural Disaster Cover Includes
Comprehensive natural disaster cover for livestock typically covers:
For sheep farmers, this should include post-shearing exposure — a uniquely NZ risk where recently shorn sheep are vulnerable to cold, wet weather.
Which Regions Need Natural Disaster Cover Most?
Hawke's Bay and Gisborne: Cyclone and flood risk proven by Gabrielle.
Manawatu and Rangitikei: Regular flooding of river flats.
Southland: Snowstorm risk for sheep and cattle.
High country stations: Snowstorm and avalanche risk.
In reality, no region of New Zealand is immune to extreme weather events, and all farmers should consider natural disaster cover.
How FMG Responded to Gabrielle
FMG, as the dominant NZ rural insurer, paid significant claims following Gabrielle. However, many farmers found their coverage insufficient because they had:
The key lesson: review your cover annually and confirm natural disaster cover is explicitly included.
