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

'Tea Break Bill' Passes: Gordon Campbell On Bad Labour Laws And Poor Safety

By co-incidence, one of the prime dangers of the government’s new employment relations law has been underlined by the release of the death and injury statistics among workers at New Zealand ports. These are highly profitable enterprises for the port owners.

The Port of Tauranga for instance, is expecting its current full-year profit to be between $78 million and $83 million and other ports are enjoying similar boom times – but they are also highly dangerous places for the people who work on or around the port premises. At the Port of Tauranga, there have been 26 serious accidents since 2011, and two deaths. More>>

 

Parliament Today:

No Charges: Outcome Of Operation Clover Investigation

Police have completed a multi-agency investigation, Operation Clover, into the activities of a group calling themselves “The Roast Busters”. The 12 month enquiry focused on incidents involving allegations of sexual offending against a number of girls in the Waitemata Police district and wider Auckland area... More>>

ALSO:

UNICEF Report: NZ Cautioned On "Stagnating" Child Poverty

An international report by UNICEF has found that child poverty rates in New Zealand have barely changed since 2008, despite similar sized countries significantly reducing child poverty during the recent recession. More>>

ALSO:

Funding Report: Two Pathways For Transport In Auckland

Commissioned by Auckland Council, the group was asked to investigate two possible pathways for raising $300 million per year ($12 billion over 30 years) to pay for the improvements needed to help fix Auckland’s transport system. More>>

ALSO:

Pay Equity: Equal Pay Win In Court Of Appeal

CTU: The Court of Appeal has made a historic decision paving the way for a substantial equal pay claim for aged care workers. More>>

ALSO:

Gordon Campbell: On The TPP Finishing Line, And Amazon’s Woes

If the Trans Pacific Partnership trade deal wasn’t such a serious matter, this would be pretty funny… More>>

ALSO:

TV3 Video: Three Die On Roads Over Labour Weekend

The official holiday period ended at 6am Tuesday, with three deaths on the roads during the Labour Day weekend. More>>

Employment Relations Bill: Govt Strains To Get Tea Break Law Through

The Government has been left with egg on its face - failing to get its much-vaunted, but hugely unpopular, meal break law passed in the first week of its new term, Labour spokesperson on Labour Issues Andrew Little says. More>>

ALSO:

Guns: Police Association Call To Arm Police Full Time

"The new minister gave his view, that Police do not need to be armed, while standing on the forecourt of parliament. The dark irony was that the interview followed immediately after breaking news of a gunman running amok in the Canadian parliament in Ottawa..." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news