In 2023, the volatile combination of the tail end of both tropical cyclones Hale and Gabrielle resulted in severe flooding and storm damage that decimated parts of New Zealand. FMG, an agricultural insurer that insures over half of New Zealand's farmers and growers, sprung into action, processed over 12,000 claims, the largest response in the organisation’s 120 year history. The insurer did not stop at paying claims, going above and beyond to support rural New Zealand, and help farmers grow back stronger.
In early 2023, Cyclone Gabrielle struck parts of New Zealand. This, coupled with severe flooding from Cyclone Hale striking the country only two weeks prior, caused an unprecedented amount of damage, severely impacting people’s lives. Within a week FMG, lodged more than 3500 claims, a number which went on to total more than 12,000.
The damage caused was devastating, to date, FMG has paid out over NZD 300 million to clients, the largest response in its 120 year history, with the largest claim totalling over NZD 20 million but for the insurer, its role in supporting members through this disaster went beyond paying claims.
The impact on claims and operations
Almost immediately, the insurer realised it had to take a ‘one team’ approach, pulling resources from throughout the business to support lodging and managing claims. A Recovery Management Response Group (RMRG) was immediately set up to establish governance over the event. Reports from the group’s bi-weekly and ad hoc meetings were fed back to the Executive Leadership Team and the Board of Directors. The RMRG also managed media attention, significantly impacted clients and areas, whilst also maintaining the structure and leadership, and making quick decisions for the wider business.
A separate Recovery Response Team was later created, consisting of claims advisors, administrators, assessors and technical leads. The team was set apart from the ‘BAU’ claims workflow, its entire capacity dedicated to progressing the 2023 North Island Weather Events (NIWE) claims. Part of the team’s efforts included a call drive initiative, employees reaching out to clients in impacted regions who had not yet made a claim, first confirming they were okay, and inquiring into whether they needed to lodge a claim or receive insurance advice. The team remained in force for a year, gradually decreasing in capacity as the NIWE claims settled.
The effect of the surge to over 12,000 claims remains felt today. FMG has since modified the roles in the claims department to ensure it can more effectively progress claims every time staff interact with clients. The insurer also began an initiative titled the Future of Claims (FOC) to improve systems and processes for better handling of future events.
One of the most important changes since the NIWE is the creation of the Claims Event Response Plan (CERP), providing a step-by-step guide to handling events of all sizes and scales in the future. This has been shared with key business stakeholders and tested via a desktop scenario in order to more effectively help clients should a similar surge happen again.
All FMG claims employees receive training on dealing with difficult client situations and having empathetic conversations. During events such as the NIWE, refresher training is held. It is also critical for the insurer that employees are supported in managing their own wellbeing during such events as staff are often busier, running on adrenaline, and speaking to clients who are in incredibly vulnerable situations.
FMG also ran resilience training, fun events at work, and had its Employee Assistance Programme available for employees to access during this period. The insurer set clear goals for staff, creating weekly and monthly exposure closure goals to encourage and motivate the team to continue pushing through and managing their increased workloads, one exposure at a time, and celebrating successes and holding team events that marked certain milestones.
Despite this event being the largest in FMG’s 120-year history, the organisation closed more claims in a short time frame than any previous large event, through the unwavering commitment of its people.
Published June 2025
Support beyond paying claims
As a mutual insurer, FMG operates for the benefit of its members. The organisation insures over half of New Zealand's farmers and growers, its purpose, a better deal for rural New Zealand along with its vision helping to build strong and prosperous rural communities, means the organisation was primed to help its members in a way that went beyond paying claims.
When communications channels were interrupted by the storm, the insurer went the extra mile, reaching out through the usual channels of texting and emails, but it also went further, proactively phoning clients in the hardest hit areas and leveraging wider media channels including radio, print and digital. FMG called over 6,000 of its clients, helping them with claims and offering support for future needs.
At the height of the storm’s impact on the organisation, FMG had a 250% call increase from its usual level. Staff went the extra mile to ensure clients were supported. The insurer also sent assessment teams into hardest hit regions, prioritising clients who had been most impacted, such as those who lost their homes.
The impact on the community
When weather events like Cyclone Gabrielle hit, the damage caused goes beyond financial loss, devastating peoples’ livelihoods, and putting their lives on pause while they recover and build back. The 2023 NIWE had a multitude of consequences, impacting families, communities, and finances across the country with raising premiums and living expenses.
FMG wanted not just to support clients through the claims experience, but also to support their wellbeing and help communities thrive again in this challenging time. To do this, it launched several initiatives:
- Dinner on us: FMG donated family sized frozen meals to stores across hardest hit areas which were distributed to those most in need. More than 450 meals were provided, but it was about more than just providing food. For Rural Support Trust Wairoa, the meals were a foot in the door it had not previously been able to get. Turning up with a meal in hand opened up the possibility for conversation, helping FMG and its representatives to understand the challenges people were facing.
- Farmstrong’s ‘Getting Through’ book: FMG supported Farmstrong, a wellbeing programme for rural communities in New Zealand, in creating a book which shares what it takes to get through extreme weather events using the hard-won wisdom of farmers and growers who experienced the floods and cyclones of 2023. Their stories highlight what works and what doesn’t when you’re facing a daunting workload and the uncertainty of long-haul recovery. The book and accompanying website also contain a ‘ Farmstrong toolkit' of mental skills and thinking strategies based on the latest science of wellbeing which are designed to strengthen the mental wellbeing and resilience of rural communities dealing with major setbacks. Five thousand copies of the book have already been distributed, and a further 5,000 have been printed due to the demand.
- Farmstrong comedy shows: the insurer also partnered with Farmstrong to deliver 12 comedy shows across hardest hit areas, bringing a much needed life to spirits among rural communities most affected. These shows, a partnership between comedy duo ‘The Bitches Box’ and Rural Support Trust, gave farmers and growers a well-earned break, a chance to step away from the farm, and share a laugh with friends. Farmstrong sold over 1800 tickets for these shows, raising NZD 25,000 which went straight back to the local community groups that ran the BBQs at each show.
- FMG Region-off: The insurer introduced a new feature in its FMG Young Farmer of the Year contest. The FMG Region-off saw young farmers from across seven regions competing in a showdown centred around giving back to their community, earning points through public voting and community focused challenges ahead of the Young Farmer of The Year Grand Final. The East Coast took home the win and NZD 5000 for their chosen charity, East Coast Rural Support Trust.
Lessons learnt after the event
Following the events of the NIWE, FMG has taken several lessons away, including in future planning, particularly focused on the way and frequency the insurer communicates with clients during large scale events.
The insurer spent 18 months creating a Claims Events Response Plan (CERP) using feedback from teams across the country and business to improve processes and better prepare for the future. The CERP includes specific trigger levels to activate response actions either prior to, where possible, or as soon as an event strikes. The insurer has designated the Head of Claims Strategic Operations role as the ‘on-call’ head of response to claims disaster events.
The CERP is kept confidential but shared with key business leaders and stakeholders and can be shared more widely if required. The CERP is reviewed bi-annually, to ensure it remains inline with the current business proposition.
FMG has a loss prevention programme, designed to help clients manage everyday risks as well as those that come with large events, such as cyclones. The programme shares lessons the insurer has learnt from past events, empowering clients to build their own strategies for mitigating and adapting to risks through a range of practical tools including topic focused workshops, on farm risk conversations, and insights from real claims data.
At the end of 2024, FMG launched the Disaster Information Page (DIP) on its website, with subpages providing information and advice for eight disaster events: earthquakes, hailstorms, snow, storms and flooding, tsunami, wildfires, windstorms and volcanic eruption. Each subpage contains detailed FAQs to help clients in the event of an a disaster, including advice and important information, instructions on how to lodge a claim, and printable step by step disaster claims guide for clients and employees to utilise at the time of an event.
The DIP is educational and beneficial to all FMG stakeholders and gives its clients the power and reassurance to begin their recovery alongside, or before they are able to lodge their claims.
Feedback in the wake of the event was overwhelmingly positive, not only from FMG’s clients, but also from non-clients who approached the insurer noting that the experience their peers had had with FMG made them wish they were also insured with the organisation.
Towards the end of 2023, FMG interviewed 38 of its people, gleaning stories from the NIWE and marking a significant point in the company’s history. Videos from these interviews were shared internally and are used as a learning tool for new starters and will eventually be shared to connect with clients.
Additionally, FMG also interviewed two of its clients about the devastation the NIWE had on them, their families and their livelihoods. Their stories were shared across FMG’s website and platforms, spreading their story.
The support FMG provided rural New Zealand, as well as the insurer achieving B Corp status earned it the 2024 Cooperative Business New Zealand’s ‘Mutual of the Year’ award
Hear the story of two of FMG's clients
About FMG
FMG is New Zealand’s leading rural insurer. It provides risk advice and insurance to over 96,000 people across 30 offices nationwide. It underwrites General (P&C) Insurance products (outsourcing for non-standard client needs) and partners to provide Personal Insurance products covering life and health. The majority (51%) of NZ’s Farmers & Growers put their trust in the mutual
FMG has been part of the New Zealand farming landscape for over a century. But although its historical roots are in agriculture, FMG also offers a broad range of business, household and personal insurances. And, as a mutually owned insurer, all its profits go back into the business to support its clients and help keep their premiums competitive.
