New Zealand: Insurers settle US$11 bln Canterbury quake claims
Source: Asia Insurance Review | Jun 2015
Private insurers have paid out almost NZ$15 billion (US$11 billion) to settle commercial and residential claims since the Canterbury earthquakes in 2010 and 2011, of which over NZ$6 billion was for domestic claims, according to the Insurance Council of New Zealand (ICNZ).
Private insurers have settled almost 15,000 over-cap residential Canterbury earthquake claims, including 1,100 in the quarter to 31 March 2015, or equivalent to 12 properties a day. At the end of March 2015, there were 24,200 over-cap residential claims.
Over-cap claims are those in which the cost of home repair or replacement will exceed the Earthquake Commission (EQC) ceiling, which for most people is NZ$100,000 (+ GST). If damage from any single event exceeds the EQC cap (usually $100,000 + GST), the management of repairs or replacement will be handed over to the homeowner’s private insurer. EQC is the government agency providing natural disaster insurance to residential property
“Insurers are working constructively with EQC to better understand how many more will be coming over in 2015 because we’re mindful that there are still customers who have yet to be transferred to their insurer or are in dispute with EQC over the status of their claim,” said ICNZ Chief Executive, Mr Tim Grafton.