Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Over $10 Billion Paid By Insurers for Canterbury Earthquake

12 February 2014

Over $10 Billion Paid Out By Insurers for Canterbury Earthquake Recovery

Insurers involved in the Canterbury earthquake recovery effort have paid out over $10 billion in commercial and residential settlements, according to the Insurance Council of New Zealand.

At the end of 2013, $6.7 billion dollar had been paid out for commercial settlements and $3.5 billion in residential settlements.

“Of the $6.7 billion of commercial claims paid out, $2 billion was in 2013 alone and that doesn’t include recent settlements such as the largest insurance pay out in New Zealand’s history to the Ports of Lyttelton of $428 million,” says Insurance Council Chief Executive Tim Grafton.

The Ports of Lyttelton pay out will occur in the first quarter of 2014.

“That means 70% of all commercial claims have now been settled and reinforces the value of insurance in helping the commercial sector to quickly recover from what was one of the biggest-ever insurance disaster events globally,” says Mr Grafton.

“The commercial pay outs also includes $1 billion in business interruption insurance, money that helped Canterbury to get back on their feet quickly following the earthquakes,” he says.

In 2013 more than $1.56 billion was paid out in settling and completing Canterbury earthquake residential claims.

“That’s over $4 million a day being paid out to settle residential claims, taking the total residential payments for repairs, rebuilds and cash settlements to date to over $3.5 billion,” says Mr Grafton.

Based on data collected by CERA to 31 December 2013, 54% of all Over Cap and Out of Scope claims with insurers and government-owned claims management company Southern Response were settled and completed, that’s includes 58% of all Out of Scope and 42% of all Over Cap claims.

Out of Scope claims are those outside the scope of EQC which includes driveways, pathways and swimming pools. Over Cap claims are those above the $100,000 plus GST cap for EQC.

The CERA data shows that insurers have 64,925 Out of Scope claims of which 37,932 have been settled and completed. Insurers have 21,962 Over Cap dwelling claims of which 9,119 have been fully settled and completed.

There is a further 9,759 Over Cap dwelling claims in the pipeline, taking the total settled and completed and in progress (after agreement with the insured) to 86% of all Over Cap residential claims.

“Last year we also started to see completed insurer-managed rebuilds and repairs that began in 2012 come through the other end of the pipeline, with 725 rebuilds and 769 repairs completed by the end of 2013,” says Mr Grafton.

“These were insurer-managed rebuilds and repairs that could only have started late in 2012 because of ongoing seismic activity, the release of building guidelines and ongoing EQC apportionment work,” he says.

Builders are reporting that over 6,000 residential properties were built in 2013 and will increase to 7,000 in 2014, much of that will be from insurance monies released through cash settlements.

“Also consenting forecasts from the Christchurch City Council indicates that 2014 and 2015 will be a big year for the completion of insurer-managed residential rebuilds and repairs,” says Mr Grafton.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news