Insurer Canterbury Residential Claims 87% Completed
3 November 2013
INSURER CANTERBURY RESIDENTIAL CLAIMS 87% COMPLETED OR IN RESOLUTION
Insurers involved in the Canterbury recovery have completed or agreed resolution for 87% of their residential property claims.
Data collected by CERA to 1 October 2013 confirms that of the 24,660 over cap dwellings with insurers, 21,250 are fully completed or resolution is in progress.
“Insurers resolved and completed about 1800 dwelling claims in the three months to 1 October,” says Insurance Council Chief Executive Tim Grafton. “Given this includes rebuilds and major repairs which can take up to a year to finish, it demonstrates encouraging progress and is in line with projections of the industry.
“To date insurers have completed 1240 major repairs and rebuilds, 540 of those just in the last three months, confirming the residential recovery of Canterbury is definitely ramping up,” says Mr Grafton.
The data shows that 10,000 (41%) over cap dwelling claims are fully completed and agreed resolution for a further 11,250 (46%) properties is in progress, which means they are scheduled for insurer-managed repairs and rebuilds or external resolution. CERA defines external resolution as resolved outside the insurer’s project management office including cash settlement or house reinstatement.
“Insurers have tried to prioritise those in vulnerable situations, so it’s especially pleasing to note that 82% of the 4212 properties with vulnerable customers have had their claims resolved,” says Mr Grafton.
“While the progress to date is reassuring, insurers are realistic about the challenges that still lay ahead,” he says.
During the last quarter a further 290 properties became over cap, transferred from the Earthquake Commission to insurance companies.
“Even with the newly over cap properties, insurers and their project management teams are still projecting that many will have completed their claims by the end of 2015, leaving about 3 percent of the residential programme to be wrapped up in 2016,” he says.
“However, we’re mindful that there are a number of substantial issues that could have a significant impact on the timelines including land settlement and remediation, available geo-technical data, speed of consenting and the unidentified number of properties that may yet become over cap in the coming months,” says Mr Grafton.