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

 

PARLIAMENT TODAY:

  • Week in Parliament 22-05-15
  • Saturday Sitting
  • House Rises At Midnight
  • Telco Levy Bill Passes
  • Telco Levy Bill Completes First Reading
  • Social Housing Bill Passes Under Urgency

  • Labour Party: McCully Doesn’t Deny Bribe In Saudi Sheep Scandal

    “In Parliament today I asked Murray McCully directly: Why is he the first Minister in history to back a multi-million dollar facilitation arrangement which in other jurisdictions is called a bribe? says Labour’s Export Growth and Trade spokesperson ... More>>

    ALSO:

    Welfare: Closure Of Relationships Aotearoa

    The Aotearoa New Zealand Association of Social Workers (ANZASW) Chief Executive Lucy Sandford-Reed is concerned about the closure of a national service which provides a wide range of services to rural and urban communities throughout New Zealand. More>>

    ALSO:

    TPPA: University Of Auckland Warns Of Negative TPP Impact

    The University of Auckland May 20, 2015 University of Auckland Warns of Negative TPP Impact With the Trans Pacific Partnership (TPP) negotiation drawing to a close, the University of Auckland has expressed serious concerns about its potential implications. ... More>>

    NZ Flag: Flag Referendum Gets Hit Hard In New Poll

    The latest Campbell Live text poll confirms it is time for the Prime Minister to listen to the public and shelve his flag referendum, says the New Zealand First Leader Rt Hon Winston Peters. More>>

    Gordon Campbell: The Government’s Belated Moves On Property Speculation

    Is it a property tax on capital gains or a capital gains tax on property? The Jesuitical distinctions in the government’s spin about its latest moves on property speculators are all about whether the government can claim that it jumped, or confess that it ... More>>

    Grant Robertson:
    Key Can’t Just Be Prime Minister For Parnell

    John Key must show New Zealanders in next week’s Budget that he is more than the Prime Minister for Parnell, and is also the Prime Minister for Pine Hill, Putararu and Palmerston North, Labour’s Finance spokesperson Grant Robertson says. In a ... More>>


    Labour Party: More Regional Jobs Go In Corrections Reshape

    News that 194 Corrections staff are to lose their jobs will have ramifications not only for them and their families but for the wider community, Labour’s Corrections spokesperson Kelvin Davis says. Prison units at Waikeria, Tongariro and Rimutaka ... More>>

    ALSO:

  • NZ First - Prison Job Losses to Send Money Offshore
  • TPPA: ‘Team Obama’ Regroups On Fast Track, Still Not Deliverable

    ‘After yesterday’s stinging and unexpected defeat for the Obama administration’s attempt to advance Fast Track legislation in the US Senate, Senate leaders have worked up a compromise they think will get them past this blockage’, according to Auckland ... More>>

    NZ Government: 5,500 More Doctors And Nurses In Our Hospitals

    Health Minister Jonathan Coleman says a record number of doctors and nurses are working in District Health Boards across the country. More>>

    Controller and Auditor General: Katherine Rich Conflict of Interest Decision

    We are writing to you about a matter that has been raised with us by members of the public. More>>

    ALSO:

    Budget 2015: Andrew Little On The 2015 Budget

    Speaking to the Chamber of Commerce, the Labour opposition leader attacked the government’s approach to economic issues facing New Zealand. He said they have been “more than reckless in their complacency” and “the next week’s budget will do nothing ... More>>

    Defence Force: NZDF Building Partner Capacity Mission Personnel In Iraq

    NZDF Building Partner Capacity Mission Personnel in Iraq The New Zealand Defence Force Building Partner Capacity training mission contingent is in place at Taji Military Complex in Iraq. The Chief of Defence Force Lieutenant General Tim Keating says the ... More>>

    PM Press Conference: ACC Levy Cuts Announced

    In a press conference this afternoon in Wellington, ACC Minister Nikki Kaye proposed $500 million worth of ACC levy cuts. More>>

    Quakes: New Process For Red Zone Crown Offers

    Canterbury Earthquake Recovery Minister Gerry Brownlee has announced a process to give everyone a say on the Crown offers to owners of vacant, commercial/industrial and uninsured properties in the Residential Red Zone. More>>

    ALSO:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
     
    Regional
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news