Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Labour Party Policy a Mixed Bag

Labour Party Policy a Mixed Bag


The Insurance Council of New Zealand (ICNZ) would welcome any review of insurers’ response to the Canterbury earthquakes, rejects the Labour Party’s proposal for another regulator of the industry and supports its policy of transferring levies from insurance premiums.

ICNZ Chief Executive Tim Grafton in responding to the Labour Party’s policy on disaster-related insurance issues strongly rejected criticism of insurers’ efforts.

“The Canterbury earthquake series is without doubt one of the world’s most complex insurance claims which has no international benchmarks with which to make comparisons,” he says.

“Yes lessons have been learned but insurers have done extraordinarily well in progressing claims given the complexities. Indeed 87% of all over-cap claims for major repairs and rebuilds are either settled or in the build queue.

“Progress for insurers has been dependent on multiple organisations and issues beyond insurers’ control, so if there were an independent review we would welcome the cold light of objectivity being shone on every nook and cranny of the recovery because I am confident that we would not be found wanting,” Mr Grafton says.

The industry is also in the process of reviewing the Fair Insurance Code, following public submissions and a rigorous assessment of how insurers can improve the way they deal with their policyholders. A revised code is expected to come into force by early next year.

“However, we have concerns about setting up what looks like yet a third regulator for the industry as the Reserve Bank and the Financial Markets Authority already have responsibilities for regulating insurers. This will add costs to insurers which will inevitably be passed on to policy holders,” he says.

“Labour’s policy to transfer the EQC levy to rates is welcomed. For consistency, it should also commit to removing the Fire Service Levy to rates as this would address the free-rider problem where people who don’t insure enjoy the benefits of the public good the Fire Service brings. It is good policy to remove levies from insurance to help keep it affordable and available for all. Local government should be reimbursed for the cost of collection.

“We agree the EQC cap of $100,000 needs to be lifted. It was meant to represent the cost of rebuilding a modest home and has not changed since 1993. However, this will increase EQC’s aggregate exposure and will therefore increase the levy.

“There are many other issues that are not addressed by this policy including how EQC will cover land in future. Land coverage has proved one of the most challenging aspects that Christchurch has raised particularly with respect to area-wide damage increasing vulnerability to risks like flooding and the implications for properties and how they get reinstated,” says Mr Grafton.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

International Rankings: Student Results 'Show More Resourcing Needed'

NZEI: "For the second time in a week, international assessments show we have a problem... We need to put more resources into schools in high poverty communities to ensure all kids get the support they need."

New Zealand had only held relatively steady in international rankings in some areas because the average achievement for several other OECD countries had lowered the OECD average -- not because our student achievement has improved. More>>

 

Salvation Army Report: Beyond The Prison Gate Report

A new Salvation Army report says changes must be made to how prisoners re-enter society for New Zealanders to feel safe and secure in their homes and communities. More>>

ALSO:

Surprise Exit: Gordon Campbell On The Key Resignation

The resignation of John Key is one thing. The way that Key and his deputy Bill English have screwed the scrum on the leadership succession vote (due on December 12) is something else again. It remains to be seen whether the party caucus – ie, the ambitious likes of Steven Joyce, Judith Collins, Paula Bennett, and Amy Adams – will simply roll over... More>>

ALSO:

Q+A: Labour's Michael Wood Wins Mt Roskill

Labour’s Michael Wood, who last night won a 6,000 vote majority in the Mt Roskill by-election, says the reason for the win was simple, clear messaging... More>>

ALSO:

Gordon Campbell: On Anne Tolley’s Callous Folly

Last week’s conflict between Social Development Minister Anne Tolley and District Court judge Carolyn Henwood illustrated quite a few of the flaws in the system. More>>

ALSO:

Members’ Bills: Greens' Domestic Violence And Loans Bills Pulled From Ballot

Jan Logie’s Domestic Violence-Victims' Protection Bill introduces workplace protections for victims of domestic violence, including allowing victims to request paid domestic violence leave for up to 10 days... Gareth Hughes’ Bill allows Kiwis with student loans to defer their student loan repayments into a first home savings scheme. More>>

ALSO:

IPCA: Police Did Not 'Deliberately' Use Pepper Spray On 10-Year-Old

"When spraying the man, the officer did not properly consider the necessity of using pepper spray in a confined space, the likelihood that it would affect the other innocent passengers or the fact that he was using a more powerful spray." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news