Cash payments were more conducive to local economic recovery after the 2010-11 Christchurch Earthquakes than house repairs done through the managed repair programme, according to findings by Resilience to Nature's Challenges' Economics Toolbox researchers.
The research agenda included examining both the government-run Earthquake Commission (EQC) insurance, the private residential insurance that sits on top of the EQC cover, and commercial insurance (both for commercial property and business interruption), says the Resilience to Nature’s Challenges team in a statement.
No difference between delayed insurance payouts and no insurance
In another research project, the team documented that firms that had insurance and were paid promptly recovered much better than both firms with no insurance and firms that had insurance but whose claim payments were delayed.
Unexpectedly, it found that there was no observable difference in recovery trajectories between those firms that had no insurance at all, and those who did, but whose payments were belated.