Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


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

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>

ALSO:

Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>

ALSO:

More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>

ALSO:

Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>

ALSO:

Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>

ALSO:

General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news