Natural Disasters and Livestock Insurance: Lessons from Cyclone Gabrielle

Cyclone Gabrielle killed 25,000 sheep and 3,000 cattle. Here is what farmers learned about natural disaster cover — and what you should check in your policy.

Cyclone Gabrielle in February 2023 was New Zealand's costliest natural disaster in decades. For livestock farmers in Hawke's Bay, Gisborne, and Wairoa, it was catastrophic — approximately 25,000 sheep and 3,000 cattle died, with total agricultural losses estimated in the hundreds of millions.

The aftermath revealed significant gaps in livestock insurance coverage for many farmers. Some key lessons that emerged: many standard livestock policies covered accidental death but had limited specific coverage for flood and inundation; exclusions for certain weather events were buried in fine print; and underinsurance was widespread.

Natural disaster cover for livestock is typically an extension or endorsement on a standard policy, not automatically included. Farmers should specifically ask their broker to confirm that their policy covers: flood and inundation, cyclone and extreme wind, storm and severe weather, snow and cold exposure events, and landslide and erosion.

Farmers in high-risk regions — Hawke's Bay, Manawatu, Westland, and Northland — should consider whether their standard policy limits are adequate for a major weather event. Reviewing your policy before the cyclone season (November–April) is good practice.

The Government provided some post-Gabrielle assistance, but many farmers found that government support was limited and insurance claims were the primary financial recovery pathway. Having clear, comprehensive livestock cover before a disaster is far better than relying on post-event support.

Coverage Types Mentioned in This Guide