Christchurch woman Pam Sharpe has endured earthquakes, fires and dealing with insurance companies, but then she received a parking ticket. She tells Checkpoint what happened next.
The insurance arms of Suncorp New Zealand have reported lower profits off the back of the Kaikoura earthquake and a rise in Canterbury earthquake claims. .
We examine the role of business interruption (BI) insurance in business recovery following the Christchurch earthquake in 2011. First, we ask whether BI insurance increases the likelihood of business survival in the immediate (3-6 months) aftermath of a disaster. We find positive but statistically insignificant evidence that those firms that had incurred damage, but were covered by BI insurance, had higher likelihood of survival post-quake compared with those firms that did not have any insurance. For the medium-term (2-3 years) survival of firms, our results show a more explicit role for insurance. Firms with BI insurance experience increased productivity and improved performance following a catastrophe. Furthermore, we find that those organisations that receive prompt and full payments of their claims have a better recovery than those that had protracted or inadequate claims payments, but this difference between the two groups is not statistically significant. We find no statistically significant evidence that the latter group (inadequate payment) did any better than those organisations that had damage but no insurance coverage. In general, our analysis indicates the importance not only of adequate insurance coverage, but also of an insurance system that delivers prompt claim payments. This is a post-peer-review, pre-copyedit version of an article published in 'The Geneva Papers on Risk and Insurance - Issues and Practice'. The final authenticated version is available online at: https://doi.org/10.1057/s41288-017-0067-y. The following terms of use apply: https://www.springer.com/gp/open-access/publication-policies/aam-terms-of-use.
People who've bought houses in Canterbury since the September 2010 earthquake and are still battling with insurance companies over repairs, have been told that if they want to take the matter to court, today is their last chance. Earthquake claims specialist Lisa Taylor from the law firm Anthony Harper joins us.
A review of the week's news including... Relief after cyclone Cook passes quickly down the North Island with limited damage, questions about what was known about the increasing risk of Edgecumbe stop banks bursting, the man who gave us Fred Dagg has died suddenly, three more former CERA staffers are being investigated after conflict of interests prompted calls for a wider inquiry, a warning more homeless families will be sleeping in cars parks and garages in Auckland this winter, the High Court rules excessive defamation damages against Colin Craig constitute a miscarriage of justice, a verdict in a defamation against the Labour leader Andrew Little, relatives of New Zealand soldiers killed on duty in South East Asia are relieved their family members will be finally returned home, US consumer campaigner Erin Brockovich visits Christchurch homeowners who are trying to settle earthquake insurance claims six years on, three teams have been cut from the Super Rugby competition and a more than 50 year old copper time capsule has been cracked open.
The Canterbury earthquakes of 2010 and 2011 generated hundreds of thousands of insurance claims, many of which were disputed. The New Zealand justice system faced the same challenge encountered by other jurisdictions following a natural disaster: how to resolve these disputes quickly and at minimal cost but also fairly, to avoid compounding the disaster with injustice? The thesis is of this article is that although the earthquakes were catastrophic for New Zealand, they also created a unique opportunity to design an innovative civil justice process—the Christchurch High Court Earthquake List—and to test, over a relatively short timeframe, how well that process works. This article describes the Christchurch High Court Earthquake List and analyses it by reference to civil justice theory about the relative normative values of public adjudication and private settlement and the dialogic relationship between them. It then evaluates the List, using statistics available five years on from the earthquakes and by reference to the author’s own experience mediating earthquake disputes.