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

Two Dead, One Injured – Suspect Arrested:

Police apprehended Russell John Tully just after 5pm this evening following the armed incident in Ashburton this morning.

Canterbury dog section and AOS apprehended Tully not far from Lake Hood. No shots were fired although Tully will be treated for minor dog-bite injuries.

Tully is now in custody at Ashburton Police Station. More>>


  • 3 News Out-Link - Livestream: Ashburton shooting press conference from 5pm

  •  

    Parliament Today:

    John Key Press Conference: Ashburton Shootings, Judith Collins Inquiry

    Prime Minister John Key has delayed the release of Nationals’ fiscal policy in light of this morning’s shooting at a Work and Income office in Ashburton... Key also answered questions about Judith Collins, and confirmed that independent inquiry will be held with regard to allegations made against Collins. More>>

    Gordon Campbell:
    On John Key’s ‘Blame It On Judith’ Strategy

    Right now, Prime Minister John Key seems intent on limiting the scope of any inquiry into his government’s dealings with Cameron Slater. The declared aim is to make that inquiry solely about Judith Collins’ behavior with respect to the Serious Fraud Office. More>>

    ALSO:

    Gordon Campbell: On The Debate, And The Collins Accusation

    Debating is a peculiar discipline in that what you say is less important than how you’re saying it. Looking poised, being articulate and staying on topic generally wins the day – and on that score, Labour leader David Cunliffe won what turned out to be a bruising encounter with Prime Minister John Key last night on TVNZ. More>>

    ALSO:

    Gordon Campbell: On Winston Peters' Latest Bout Of Immigrant Bashing

    It is only one poll, but rather than cannibalising each other's vote, Colin Craig and Winston Peters do seem to be managing to find the room to co-exist... Few are questioning how Peters got to this happy place, and what it says about the mood of the electorate. More>>

    ALSO:

    More Immigration News: First People Trafficking Charges

    The first people trafficking charges in New Zealand have been brought by Immigration New Zealand (INZ)... The defendants have been charged under the Crimes Act 1961 for arranging by deception the entry of 18 Indian nationals into New Zealand. More>>

    Collins 'Misinterprets Media Reports': "Too Compromised To Remain Justice Minister"

    Bizarre claims by Judith Collins this morning that she had been cleared of inappropriate behaviour by the Privacy Commissioner demonstrates she is too compromised to remain Justice Minister, Labour MP Grant Robertson says. More>>

    ALSO:

    Labour On Climate Change: Focus On The Now For The Future

    A Labour Government will put in place a comprehensive climate change strategy focusing on both mitigation and adaptation, establish an independent Climate Commission and implement carbon budgeting, says Labour Climate Change spokesperson Moana Mackey. More>>

    ALSO:

    Gordon Campbell: On National’s Housing Assistance Plan

    So, as many as 90,000 people could derive some benefit from National’s housing assistance plans for low and middle-income earners... Yet in reality, the benefits seem likely to be insignificant, and they will be skewed towards those at the top end of the income group that’s supposedly the target. More>>

    ALSO:

    Election Data Consortium: National’s Worst Case Scenario At Stage One?

    A month out from the general election and ipredict traders are still forecasting National’s vote to slip below current polling levels and there is potential for it to fall further. More>>

    ALSO:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
    Regional
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news