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

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

f work for Pumpkin Patch staff

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news