The Insurance Council is predicting the severe storms that have recently hit New Zealand may see insurance payouts reach $50 million.

The Insurance Council says, while these are very early days in estimating the cost of the storm, the widespread nature of the storm and the ongoing effects of it, could see costs rise substantially in coming weeks. "The current costs are estimated at $25 million and climbing."

The Insurance Council says that ongoing climate change is now forcing increases in premiums for New Zealanders. It is likely that premiums for insurance will continue to rise simply because of the ongoing pressure of climate change on New Zealand.

This year's winter is shaping up to be another very destructive and expensive one for New Zealanders, and it follows on from last year's record-breaking list of climate-related payouts.

Last year's storms in the Far North cost insurers $12.5 million. Flooding in Nelson and New Plymouth cost $1.1 million. Tornados in Taranaki cost $8.3 million. Subsequent storms in the Far North, Auckland and Coromandel cost $61 million. Frosts in Otago and Canterbury cost $7 million. High winds in the Central North Island cost $5 million, and in addition to that the Gisborne Earthquake cost an additional $60 million.

Already this year the Insurance Council is looking at a number of very high costing events, and the current storm is now looking to possibly top the $50 million mark.

The Insurance Council's Chief Executive, Chris Ryan, said "insurance companies have already moved to raise their premiums, and this is likely to continue." He said, "insurers are reluctant to increase premiums, but are increasingly under pressure because of the significant payments being made as a consequence of climate-related events, as well as the cost of repairs."

The current storm is unlikely to be the last one this winter, and the insurance industry is gearing up for further climate-related incidents.

Insurance companies have moved into the affected areas, which spread from the Far North of the North Island to the lower part of the South Island. This is placing enormous strain on the resources of insurance companies. However, assessors are now in many of the affected areas and claims are already being received and processed.

The Industry has mobilised hundreds of staff who will be working long hours throughout the weekend to respond to claims now coming in at a very high rate. Many insurance staff have been unable to get into some badly affected areas and the Insurance Council is calling for patience from customers.

Other people who have flooded or storm-damaged properties have not yet even been able to make claims due to power and telephone outages.

The additional storm costs are on top of the normal insurance payouts made by Insurance Council members, which last year came to a total of $1.75 billion.

The Insurance Council will continue monitoring the effects of the current storm and will update any figures on payments as soon as they become available.

The Insurance Council says the regional responses to the extreme weather up and down the country have been extremely good and local authorities and recovery crews should be congratulated on the work they have done so far.

Insurance Council members are also expressing their sympathy to the individuals and communities experiencing hardship, and reassuring them that insurance staff will be in their area as soon as possible to respond to claims made.