Insurance industry slammed at Christchurch earthquake forum
Audio, Radio New Zealand
The Insurance Council has shot down criticism the industry may be delaying earthquake claims for financial gain.
The Insurance Council has shot down criticism the industry may be delaying earthquake claims for financial gain.
Both sides are expected to sum up their cases today in the legal battle between Tower Insurance and a Christchurch couple, over the amount owed on an earthquake damaged home.
Insurance is widely acknowledged as a key component in an organisation's disaster preparedness and resilience. But how effective is insurance in aiding business recovery following a major disaster? The aim of this research was to summarise the experiences of both the insurance industry and businesses dealing with commercial insurance claims following the 2010 and 2011 Canterbury earthquakes.
A blog by an ex-employee of the Earthquake Commission discussing flaws in its handling of insurance claims made as the result of the Canterbury earthquakes of 2010 and 2011.
Two years on from the Christchurch earthquakes, a local author says the insurance industry has failed in its response to the disaster.
Blog of Sandy Lees, a genealogist, taphophiliac, and ephemera collector. Reflects her interest in Canterbury history. Includes a section on the insurance woes the blogger had after the Christchurch earthquakes.
Overlapping claims and general confusion are delaying money payable to New Zealand for damage from the Canterbury earthquakes. The money involved is payable through reinsurance schemes taken out by insurance companies in this country, with firms overseas.
The "Lyttelton Harbour Review" newsletter for 15 July 2013, produced by the Lyttelton Harbour Information Centre.
Tower Insurance has increased the amount it is willing to pay towards repairing an earthquake-damaged Christchurch home, but is still refusing to pay for a more expensive rebuild.
The Canterbury earthquakes caused huge amounts of damage to Christchurch and the surrounding area and presented a very challenging situation for both insurers and claimants. While tourism has suffered significant losses as a result, particularly due to the subsequent decrease in visitor numbers, the Canterbury region was very fortunate to have high levels of insurance coverage. This report, based on data gathered from tourism operators on the ground in Canterbury, looks at how this sector has been affected by the quakes, claims patterns, and the behaviour and perceptions of tourism operators about insurance.
The "Lyttelton Harbour Review" newsletter for 18 March 2013, produced by the Lyttelton Harbour Information Centre.
The "Lyttelton Harbour Review" newsletter for 8 April 2013, produced by the Lyttelton Harbour Information Centre.
Earthquake damaged Christchurch homes written off by insurance companies are becoming hot property for investors wanting to make money renting them out.
The "Lyttelton Harbour Review" newsletter for 11 March 2013, produced by the Lyttelton Harbour Information Centre.
A couple in a red-zoned dog kennel, completing the dwelling census. Their accommodation has one room;, their only heating is by body heat and burning furniture; their rent is $1000 per week. Two years after the earthquakes, the living conditions of many in the 'red zones' of Christchurch was poor, owing to local body, government and insurance companies' tardiness. Quantity: 1 digital cartoon(s).
Phil Holdstock, a homeowner; Leanne Curtis, relationships manager for the Canterbury Communities' Earthquake Recovery Network, a network of residents association and community group representatives from the earthquake-affected neighbourhoods of Canterbury; and Jeremy Johnson, insurance partner at Wynn Williams in Christchurch.
The "Lyttelton Harbour Review" newsletter for 5 August 2013, produced by the Lyttelton Harbour Information Centre.
The "Lyttelton Harbour Review" newsletter for 25 February 2013, produced by the Lyttelton Harbour Information Centre.
The Christchurch couple taking their insurance company to the High Court over their earthquake payout have knocked almost a quarter of a million dollars off their claim.
On the third anniversary of the first major earthquake to hit Christchurch thousands of people with the most badly damaged homes are still wrangling with their insurance companies over rebuilds.
A video of an interview with James Jameson about the lack of access to his apartment in the Victoria Apartments. Many of Jameson's possessions have been trapped in the building since the 22 February 2011 earthquake, including irreplaceable art and book collections. After the earthquake, Jameson was given a couple of hours to retrieve his computer and other essentials, but he has not been allowed in since. Jameson talks about the lack of communication from the authorities , the likelihood that his possessions have been ruined, and his inability to make an insurance claim until he knows he definitely cannot retrieve his possessions.
A Waikato primary school refuses to back down and re-enroll a violent eleven year old and the country's largest general insurer defends changes to home insurance policies in the wake of the Christchurch earthquakes.
The "Lyttelton Harbour Review" newsletter for 28 January 2013, produced by the Lyttelton Harbour Information Centre.
The debt stricken state-owned enterprise Solid energy is in crisis talks with the Treasury and its banks, two years after the Christchurch earthquakes, insurance companies are blamed for delays in the rebuild, and in dateline pacific Papua New Guinea is building up its military to build roads.
Depicts National MP Aaron Gilmore walking off carrying two suitcases. A row of Christchurch insurance men are calling for him to return and saying they have the right job for his talents. Refers to Gilmore's resignation after National Party censure following to his drunken bullying behaviour to a waiter in a Hanmer Springs restaurant (3 News 13 May 2013) Quantity: 1 digital cartoon(s).
The New Zealand public contemplate a dead drought stricken landscape. As well as lack of water, there is a lack of moderate pay scales for CEOs, satisfaction with EQC, quality TV, generous insurance companies, brilliant Solid Energy management, the integrity of John Banks (and by implication that of other MPs), quality education ministers, worthwhile overseas trips by the Prime Minister, 'clever' NZ First MPs and a boost for the West Coast among others. Considered from a Canterbury perspective, the drought of early 2013 becomes a symbol for many of the recent political and social ailments afflicting the land. Quantity: 1 digital cartoon(s).
Topics - Would you like a pay rise of $10,000 a year? That's what the lowest paid Auckland Council staff will get if a plan to implement a minimum wage of $18.40 an hour goes through. The Insurance Council has received a briefing today after a report revealed hundreds of properties on Christchurch's Port Hills are on unsafe land. The GNS Science report released yesterday shows a major rain or snow storm could cause land already loosened by the earthquakes to move.
The Canterbury region of New Zealand experienced four earthquakes greater than MW 6.0 between September 2010 and December 2011. This study employs system dynamics as well as hazard, recovery and organisational literature and brings together data collected via surveys, case studies and interviews with organisations affected by the earthquakes. This is to show how systemic interactions and interdependencies within and between industry and geographic sectors affect their recovery post-disaster. The industry sectors in the study are: construction for its role in the rebuild, information and communication technology which is a regional high-growth industry, trucking for logistics, critical infrastructure, fast moving consumer goods (e.g. supermarkets) and hospitality to track recovery through non-discretionary and discretionary spend respectively. Also in the study are three urban centres including the region’s largest Central Business District, which has been inaccessible since the earthquake of 22 February 2011 to the time of writing in February 2013. This work also highlights how earthquake effects propagated between sectors and how sectors collaborated to mitigate difficulties such as product demand instability. Other interacting factors are identified that influence the recovery trajectories of the different industry sectors. These are resource availability, insurance payments, aid from central government, and timely and quality recovery information. This work demonstrates that in recovering from disaster it is crucial for organisations to identify what interacting factors could affect their operations. Also of importance are efforts to reduce the organisation’s vulnerability and increase their resilience to future crises and in day-to-day operations. Lastly, the multi-disciplinary approach to understanding the recovery and resilience of organisations and industry sectors after disaster, leads to a better understanding of effects as well as more effective recovery policy.
During 2010 and 2011, a series of major earthquakes caused widespread damage in the city of Christchurch, New Zealand. The magnitude 6.3 quake in February 2011 caused 185 fatalities. In the ensuing months, the government progressively zoned residential land in Christchurch on the basis of its suitability for future occupation (considering damage from these quakes and future earthquake risk). Over 6,000 homes were placed in the ‘red-zone’, meaning that property owners were forced to sell their land to the Crown. This study analysed patterns of residential mobility amongst thirty-one red-zone households from the suburb of Southshore, Christchurch. Drawing on interviews and surveys, the research traced their experience from the zoning announcement until they had moved to a new residence. The research distinguished between short (before the zoning announcement) and long term (post the red zone ‘deadline’) forms of household relocation. The majority of households in the study were highly resistant to short term movement. Amongst those which did relocate before the zoning decision, the desire to maintain a valued social connection with a person outside of the earthquake environment was often an important factor. Some households also moved out of perceived necessity (e.g. due to lack of power or water). In terms of long-term relocation, concepts of affordability and safety were much more highly valued by the sample when purchasing post-quake property. This resulted in a distinct patterning of post-quake housing location choices. Perceived control over the moving process, relationship with government organisations and insurance companies, and time spent in the red-zone before moving all heavily influenced participants’ disaster experience. Contrary to previous studies, households in this study recorded higher levels of subjective well-being after relocating. The study proposed a typology of movers in the Christchurch post-disaster environment. Four mobility behaviours, or types, are identified: the Committed Stayers (CSs), the Environment Re-Creators (ERCs), the Resigned Acceptors (RAs), and the Opportunistic Movers (OMs). The CSs were defined by their immobility rather than their relocation aspirations, whilst the ERCs attempted to recreate or retain aspects of Southshore through their mobility. The RAs expressed a form of apathy towards the post-quake environment, whereas, on the other hand, the OMs moved relative to pre-earthquake plans, or opportunities that arose from the earthquake itself. Possibilities for further research include examining household adaptability to new residential environments and tracking further mobility patterns in the years following relocation from the red- zone.
The city of Ōtautahi/Christchurch experienced a series of earthquakes that began on September 4th, 2010. The most damaging event occurred on February 22nd, 2011 but significant earthquakes also occurred on June 13th and December 23rd with aftershocks still occurring well into 2012. The resulting disaster is the second deadliest natural disaster in New Zealand’s history with 185 deaths. During 2011 the Canterbury earthquakes were one of the costliest disasters worldwide with an expected cost of up to $NZ30 billion. Hundreds of commercial buildings and thousands of houses have been destroyed or are to be demolished and extensive repairs are needed for infrastructure to over 100,000 homes. As many as 8,900 people simply abandoned their homes and left the city in the first few months after the February event (Newell, 2012), and as many as 50,000 may leave during 2012. In particular, young whānau and single young women comprised a disproportionate number of these migrants, with evidence of a general movement to the North Island. Te Puni Kōkiri sought a mix of quantitative and qualitative research to examine the social and economic impacts of the Christchurch earthquakes on Māori and their whānau. The result of this work will be a collection of evidence to inform policy to support and assist Māori and their whānau during the recovery/rebuild phases. To that end, this report triangulates available statistical and geographical information with qualitative data gathered over 2010 and 2011 by a series of interviews conducted with Māori who experienced the dramatic events associated with the earthquakes. A Māori research team at Lincoln University was commissioned to undertake the research as they were already engaged in transdisciplinary research (began in the May 2010), that focused on quickly gathering data from a range of Māori who experienced the disaster, including relevant economic, environmental, social and cultural factors in the response and recovery of Māori to these events. Participants for the qualitative research were drawn from Māori whānau who both stayed and left the city. Further data was available from ongoing projects and networks that the Lincoln research team was already involved in, including interviews with Māori first responders and managers operating in the CBD on the day of the February event. Some limited data is also available from younger members of affected whānau. Māori in Ōtautahi/Christchurch City have exhibited their own culturally-attuned collective responses to the disaster. However, it is difficult to ascertain Māori demographic changes due to a lack of robust statistical frameworks but Māori outward migration from the city is estimated to range between 560 and 1,100 people. The mobility displayed by Māori demonstrates an important but unquantified response by whānau to this disaster, with emigration to Australia presenting an attractive option for young Māori, an entrenched phenomenon that correlates to cyclical downturns and the long-term decline of the New Zealand economy. It is estimated that at least 315 Māori have emigrated from the Canterbury region to Australia post-quake, although the disaster itself may be only one of a series of events that has prompted such a decision. Māori children made up more than one in four of the net loss of children aged 6 to 15 years enrolled in schools in Greater Christchurch over the year to June 2011. Research literature identifies depression affecting a small but significant number of children one to two years post-disaster and points to increasing clinical and organisational demands for Māori and other residents of the city. For those residents in the eastern or coastal suburbs – home to many of the city’s Māori population - severe damage to housing, schools, shops, infrastructure, and streets has meant disruption to their lives, children’s schooling, employment, and community functioning. Ongoing abandonment of homes by many has meant a growing sense of unease and loss of security, exacerbated by arson, burglaries, increased drinking, a stalled local and national economy, and general confusion about the city’s future. Māori cultural resilience has enabled a considerable network of people, institutions, and resources being available to Māori , most noticeably through marae and their integral roles of housing, as a coordinating hub, and their arguing for the wider affected communities of Christchurch. Relevant disaster responses need to be discussed within whānau, kōhanga, kura, businesses, communities, and wider neighbourhoods. Comprehensive disaster management plans need to be drafted for all iwi in collaboration with central government, regional, and city or town councils. Overall, Māori are remarkably philosophical about the effects of the disaster, with many proudly relishing their roles in what is clearly a historic event of great significance to the city and country. Most believe that ‘being Māori’ has helped cope with the disaster, although for some this draws on a collective history of poverty and marginalisation, features that contribute to the vulnerability of Māori to such events. While the recovery and rebuild phases offer considerable options for Māori and iwi, with Ngāi Tahu set to play an important stakeholder in infrastructural, residential, and commercial developments, some risk and considerable unknowns are evident. Considerable numbers of Māori may migrate into the Canterbury region for employment in the rebuild, and trades training strategies have already been established. With many iwi now increasingly investing in property, the risks from significant earthquakes are now more transparent, not least to insurers and the reinsurance sector. Iwi authorities need to be appraised of insurance issues and ensure sufficient coverage exists and investments and developments are undertaken with a clear understanding of the risks from natural hazards and exposure to future disasters.