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Earthquake Recovery Expedited By Insurance Industry Response

Earthquake Recovery Expedited By Insurance Industry Response

London, 18 February, 2014 – The global insurance industry’s response to major earthquakes in Chile, Japan and New Zealand played a significant part in each nation’s recovery process, according to new research published today by Marsh.

In the first analysis of its kind, The Marsh Risk Management Research, Comparing Claims from Catastrophic Earthquakes, examines how the insurance industry performed in the aftermath of three of the four most expensive insured earthquakes in history, which occurred over 13 months between February 2010 and March 2011.

Marsh reports that most claims filed by Marsh clients in Chile were settled within 12 months, and the majority within 18 months in Japan. In New Zealand there are still many outstanding claims, due to practical issues such as the closure of the central business district, on-going earthquake-related activity and practical difficulties in assessing the scope and nature of damage, which is reflected across the industry. However, 16% of claims were closed after 12 months, and 32% after 18 months.

While Chile achieved the quickest claim settlement rate, the country did not experience the same degree of urban impact and restriction zones as New Zealand or Japan. Although Japan is often associated with earthquake risk, even with its prior experience, the nation was not prepared for the full extent of the earthquake, tsunami, and radioactive contamination.

David Pigot, Chairman of Marsh’s Global Claims Practice, commented: “Marsh’s research reveals that there are reassuring similarities in how insurers interpreted and applied the policy language in each of the events, which offer clients added confidence in their insurance provision and its application in future losses.

“For those negotiating settlements on their clients’ behalf, the challenge is to get insurers to treat a client as a client, and not as part of their portfolio. There is some concern surrounding the strategic portfolio implications of insurers’ decision-making, which makes them mindful about setting a precedent on other claims resulting from the same earthquake or other earthquake-related claims.”

According to Marsh, clients can mitigate potential coverage problems in several ways, including: declaring values accurately to insurers; rigorously examining supply chains and effects on customers; and understanding how policies apply deductibles and sub-limits.

David Pigot added: “The total insured loss from the earthquakes in Chile, Japan and New Zealand is currently estimated in the region of $60 billion. Regardless of how we measure these events, they were truly devastating for the communities and businesses involved. It is heartening to report that the insurance industry stepped up and played its role in enabling the recovery process.”

Earthquake_claims_MRMR__Feb_2014.pdf

ENDS

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Election Day: Make Sure You're A Part Of It!

Saturday 20 September, is election day, and New Zealanders’ last chance to have a say on who leads the country for the next three years.

“The people and parties we elect tomorrow will be making the decisions that affect us, our families and our communities,” says Robert Peden, Chief Electoral Officer. “It doesn’t get much more important than that, and we need all New Zealanders to use their voice and vote.”

Voting places will be open from 9.00am until 7.00pm on election day. The busiest time at voting places is usually 9.00am - 11.00am.

“Take your EasyVote card with you when you go to vote, as it will make voting faster and easier, and vote close to home if you can. But don’t worry if you forget your card, or didn’t receive one, because as long as you are enrolled to vote, your voice will be heard,” says Mr Peden. More>>

 

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