We examine the role of business interruption insurance in business recovery following the Christchurch earthquake in 2011 in the short- and medium-term. In the short-term analysis, we ask whether insurance increases the likelihood of business survival in the aftermath of a disaster. We find only weak evidence that those firms that had incurred damage, but were covered by business interruption insurance, had higher likelihood of survival post-quake compared with those firms that did not have insurance. This absence of evidence may reflect the high degree of uncertainty in the months following the 2011 earthquake and the multiplicity of severe aftershocks. For the medium-term, our results show a more explicit role for insurance in the aftermath of a disaster. Firms with business interruption insurance have a higher probability of increasing productivity and improved performance following a catastrophe. Furthermore, our results show that those organisations that receive prompt and full payments of their claims have a better recovery, in terms of profitability and a subjective ‘”better off” measure’ than those that had protracted or inadequate claim payments (less than 80% of the claim paid within 2.5 years). Interestingly, the latter group does worse than those organisations that had damage but no insurance coverage. This analysis strongly indicates the importance not only of good insurance coverage, but of an insurance system that also delivers prompt claim payments. As a first paper attempting to empirically identify a causal effect of insurance on business recovery, we also emphasize some caveats to our analysis.
Two Christchurch Scout groups say their national body is refusing to give them insurance payouts for earthquake damage.
The insurance company, Tower, has strongly criticised the time it's taking to settle Canterbury earthquake claims and says the insurance system for handling such disasters is broken.
Listed general insurance company Tower has reported a bigger first half loss on lingering Canterbury earthquake claims and a write down in its computer systrems.
Insurance company Tower says yesterday's earthquake in North Canterbury will cost it a maximum of just over seven million dollars.
The insurance company, Tower, is confident that putting its costly and complex outstanding Canterbury earthquake claims into a separate company will allow the rest of the group to flourish.
Shares in the insurance company, Tower, have plunged close to 20 percent today after it said its profits will likely fall more than 16-million dollars because of Canterbury earthquake claims.
A video of a presentation by Hugh Cowan, General Manager of Reinsurance, Research and Education at EQC, during a panel at the 2016 Seismics in the City Conference. The panel has three themes:A City on the Move: Collaboration and Regeneration: "'Christchurch is now moving rapidly from the recovery phase into a regeneration stage with Central and Local Government working with the wider community, including the business community to ensure we get optimal outcomes for greater Christchurch' (CECC)."Looking Back: Remembering and Learning: "What are the milestones? What are the millstones? What have we learnt? What have we applied?"Looking Forward: Visioning and Building: "What do we aspire to? What are the roadblocks? What is the way forward?"
A video of a presentation by Hugh Cowan, General Manager of Reinsurance, Research and Education at EQC, at the 2016 Seismics in the City Conference. The presentation is titled, "Working Together Strengthens Understanding".The abstract for the presentation reads, "Hear how EQC led a collaborative research project in Canterbury that involved diverse stakeholders from government, council officials and insurers to homeowners, and why collaboration means that Canterbury's geotechnical data is now helping to inform research locally, nationally and around the world."
A video of André Lovatt, Chair of Regenerate Christchurch, Hugh Cowan, General Manager of Reinsurance, Research and Education at EQC, and developer Antony Gough responding to questions from the floor during a panel at the 2016 Seismics in the City Conference. The panel has three themes:A City on the Move: Collaboration and Regeneration: "'Christchurch is now moving rapidly from the recovery phase into a regeneration stage with Central and Local Government working with the wider community, including the business community to ensure we get optimal outcomes for greater Christchurch' (CECC)."Looking Back: Remembering and Learning: "What are the milestones? What are the millstones? What have we learnt? What have we applied?"Looking Forward: Visioning and Building: "What do we aspire to? What are the roadblocks? What is the way forward?"
A review of the week's news including... A tsunami warning after a severe 7.1 earthquake north of East Cape, Havelock North's residents finally get the chance to grill their local leaders, the Environment Minister says people who insist that every lake and river should be safe to swim in are being unrealistic, Kim Dotcom wins his bid to live stream his High Court appeal against his extradition, New Zealanders who've been living in Australia for up to ten years say they're reaching breaking point, legal action over faulty steel mesh triggers doubts about some house insurance, a prominent Maori leader is found guilty of defrauding his fellow trustees in the Wellington Tenths Trust, a South Canterbury farming official says stealing 500 cows is like stealing the Crown jewels - complicated but not impossible, Auckland mayoral candidate Vic Crone pledges to bring forward the cross-harbour tunnel project by a decade or more after saying she'd make no commitments on it, while another candidate, Phil Goff wants to introduce a living wage for all council staff, the transgender community wants the waiting times for sex change operations cut, a sit down chat with Olympic pole vaulting bronze medalist Eliza McCartney and the real story behind the 2nd Bledisloe Cup test in Wellington from a former Wallaby.
There has not been substantial research conducted in the area of fraud and natural disasters. Therefore, this study sought to examine the perceptions of Canterbury residents toward the recovery process following the September 2010 and February 2011 earthquakes and whether residents felt as though contractor fraud occurs in Canterbury. A questionnaire was developed to gauge information about Canterbury residents’ self-reports involving the earthquakes, specific contractors involved, parties involved with the recovery process in general, and demographic information. Participants included a total of 213 residents from the Canterbury region who had been involved with contractors and/or insurance companies due to the recovery process. Results indicated that a high percentage of the participants were not satisfied with the recovery process and that almost half of the participants reported feeling scammed by contractors in Canterbury after the 2010 and 2011 earthquakes. Moreover, the results indicate that participants neither agreed with the assessments made about their property losses nor the plans made to recover their properties. In many cases, participants felt pressured and even reluctant to accept these assessments and/or plans. The present study does not seek to explain why contractor fraud exists or what motivates scammers. Conversely, it attempts to demonstrate the perceptions of contractor fraud and satisfaction that have taken place in the aftermath of the Canterbury earthquakes.
