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

Back Again: Government Approves TPP11 Mandate

The Government has approved a negotiating mandate for Trans-Pacific Partnership 11 (TPP11), which will ensure New Zealand businesses remain competitive in overseas markets.

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>

ALSO:

.

 
 

Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>

ALSO:

Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>

ALSO:

Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>

ALSO:

Treaty: Agreement In Principle Signed With Moriori

“The Crown acknowledges Moriori was left virtually landless from 1870, hindering its cultural, social and economic development. The Crown also acknowledges its contribution to the myths that the people of Moriori were racially inferior and became extinct." More>>

ALSO:

Susan Devoy: Call For Inquiry Into State Abuse Reaches UN

Race Relations Commissioner Dame Susan Devoy is in Geneva and has asked a United Nations committee to urge the New Zealand government to initiate an inquiry into the physical and sexual abuse of children and disabled people held in state institutions. More>>

ALSO:

(Not National): Cross-Party Agreement On Pike River Re-Entry

The commitment was signed this afternoon by the leaders of Labour, United Future, The Maori Party, and the Green Party and, together with the earlier commitment by New Zealand First, means that there is now a Parliamentary majority behind the families’ fight for truth and justice. More>>

ALSO:

Earlier:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election