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.
The 2010-2011 Canterbury earthquake sequence was extremely damaging to structures in Christchurch and continues to have a large economic and social impact on the city and surrounding regions. In addition to strong ground shaking (Bradley and Cubrinovski 2011 SRL; Bradley 2012 SDEE), extensive liquefaction was observed, particularly in the 4 September 2010 Darfield earthquake and the 22 February 2011 Christchurch earthquake (Cubrinovski et al. 2010 BNZSEE; 2011 SRL). Large observed vertical ground motion amplitudes were recorded in the events in this sequence, with vertical peak ground accelerations of over 2.2g being observed at the Heathcote Valley Primary School during the Christchurch earthquake, and numerous other vertical motions exceeding 1.0g (Bradley and Cubrinovski 2011 SRL; Bradley 2012 SDEE; Fry et al 2011 SRL). Vertical peak ground accelerations of over 1.2g were observed in the Darfield earthquake.
This report provides an understanding of the nature of Canterbury subcontracting businesses operating in the space of earthquake reconstruction in Christchurch. It offers an in-depth look at the factors that influence the development of their capacity and capability to withstand the impact of volatile economic cycles, including the 2008 global financial crisis and the subsequent 2010/11 Canterbury earthquakes. There have been significant changes to the business models of the 13 subcontracting businesses studied since the earthquakes. These changes can be seen in the ways the case study subcontractors have adapted to cope with the changing demands that the rebuild posed. Apart from the magnitude of reconstruction works and new developments that directly affect the capacity of subcontracting businesses in Canterbury, case studies found that subcontractors’ capacity and capability to meet the demand varies and is influenced by the: subcontractors’ own unique characteristics, which are often shaped by changing circumstances in a dynamic and uncertain recovery process; and internal factors in relation to the company’s goal and employees’ needs
ANDREW LITTLE to the Prime Minister: What are the priorities for the Government in assisting communities affected by yesterday’s earthquake?
MATT DOOCEY to the Minister of Finance: What advice has he received about the economic impact of the Kaikōura earthquake?
EUGENIE SAGE to the Minister of Transport: What updates can he give on the transport sector’s response to earthquake damage to State Highway 1 and the rail line between Seddon and Cheviot?
GRANT ROBERTSON to the Minister of Finance: What is his initial assessment of the fiscal impact of yesterday morning’s earthquake and what, if any, new or changed Budget allocations is he considering in response to the earthquake?
PAUL FOSTER-BELL to the Minister of Civil Defence: How is the Government supporting people affected by the Kaikōura earthquake?
RON MARK to the Minister of Civil Defence: Can the Government assure New Zealanders on our level of preparedness for all natural disasters?
SUE MORONEY to the Minister of Transport: What roads and public transport services are currently not operational following damage from the earthquake yesterday and when is it expected access and services will be restored?
BRETT HUDSON to the Minister of Transport: What action is the Government taking to repair damaged transport infrastructure following the Kaikōura earthquake?
GARETH HUGHES to the Minister of Broadcasting: Will she join with me to acknowledge the work of all media in New Zealand, which is so important in times of natural disaster and crisis; if so, will she consider increasing our public broadcaster Radio New Zealand’s funding in Budget 2017?
CLAYTON MITCHELL to the Minister of Civil Defence: What progress has been made, if any, on new civil defence legislation which focuses on large and significant events such as the Christchurch and Kaikōura earthquakes?
ALASTAIR SCOTT to the Minister of Health: What updates has he received on the Government’s health response to the Kaikōura earthquake?
CLARE CURRAN to the Minister of Civil Defence: What actions have been taken by Civil Defence to ensure those people in the areas worst hit by the earthquake have enough food, clothing, water, and shelter?
NUK KORAKO to the Minister of Finance: How does New Zealand’s growing economy and the Government’s commitment to responsible fiscal management mean New Zealand is well-placed to respond to the Kaikōura earthquake?
ANDREW LITTLE to the Prime Minister: Has he spoken to relevant Ministers about the lessons learned from the Canterbury earthquakes to ensure people affected by the recent earthquakes have an easier and faster recovery?
STUART SMITH to the Minister of Civil Defence: What update can he provide about the Government’s response to the Kaikōura earthquake?
RON MARK to the Prime Minister: Can he update the House on the situation in quake-affected areas in the South Island?
JAMES SHAW to the Prime Minister: Is he committed to all his Government’s policies?
Hon ANNETTE KING to the Minister of Health: Does he stand by his statement that following the Valentine’s Day earthquake this year in Canterbury, “it was timely to review whether any additional mental health and wellbeing support was needed”; if so, will he consider reviewing whether any additional support is needed for Canterbury and Nelson-Marlborough district health boards as a result of the recent earthquakes?
JACQUI DEAN to the Minister of Transport: What updates has he received on damage to transport infrastructure following the Kaikōura earthquake?
JAN LOGIE to the Minister for Workplace Relations and Safety: What is his response to yesterday’s call from members of the Joint Working Group on Pay Equity Principles for the Government to “immediately right this historic wrong and implement the JWG principles”?
JACINDA ARDERN to the Minister for Economic Development: When is he likely to announce a recovery or support package for small businesses in earthquake-affected areas?
KANWALJIT SINGH BAKSHI to the Minister of Police: What are New Zealand Police doing to support the Kaikōura community?
CHRIS HIPKINS to the Minister of Education: When did she first discuss the potential impact of Monday’s 7.5 earthquake on NCEA and Scholarship exams with the New Zealand Qualifications Authority?
IAN McKELVIE to the Minister for Primary Industries: What recent reports has he received on the impact of the recent earthquakes on the primary sector?
Sewerage systems convey sewage, or wastewater, from residential or commercial buildings through complex reticulation networks to treatment plants. During seismic events both transient ground motion and permanent ground deformation can induce physical damage to sewerage system components, limiting or impeding the operability of the whole system. The malfunction of municipal sewerage systems can result in the pollution of nearby waterways through discharge of untreated sewage, pose a public health threat by preventing the use of appropriate sanitation facilities, and cause serious inconvenience for rescuers and residents. Christchurch, the second largest city in New Zealand, was seriously affected by the Canterbury Earthquake Sequence (CES) in 2010-2011. The CES imposed widespread damage to the Christchurch sewerage system (CSS), causing a significant loss of functionality and serviceability to the system. The Christchurch City Council (CCC) relied heavily on temporary sewerage services for several months following the CES. The temporary services were supported by use of chemical and portable toilets to supplement the damaged wastewater system. The rebuild delivery agency -Stronger Christchurch Infrastructure Rebuild Team (SCIRT) was created to be responsible for repair of 85 % of the damaged horizontal infrastructure (i.e., water, wastewater, stormwater systems, and roads) in Christchurch. Numerous initiatives to create platforms/tools aiming to, on the one hand, support the understanding, management and mitigation of seismic risk for infrastructure prior to disasters, and on the other hand, to support the decision-making for post-disaster reconstruction and recovery, have been promoted worldwide. Despite this, the CES in New Zealand highlighted that none of the existing platforms/tools are either accessible and/or readable or usable by emergency managers and decision makers for restoring the CSS. Furthermore, the majority of existing tools have a sole focus on the engineering perspective, while the holistic process of formulating recovery decisions is based on system-wide approach, where a variety of factors in addition to technical considerations are involved. Lastly, there is a paucity of studies focused on the tools and frameworks for supporting decision-making specifically on sewerage system restoration after earthquakes. This thesis develops a decision support framework for sewerage pipe and system restoration after earthquakes, building on the experience and learning of the organisations involved in recovering the CSS following the CES in 2010-2011. The proposed decision support framework includes three modules: 1) Physical Damage Module (PDM); 2) Functional Impact Module (FIM); 3) Pipeline Restoration Module (PRM). The PDM provides seismic fragility matrices and functions for sewer gravity and pressure pipelines for predicting earthquake-induced physical damage, categorised by pipe materials and liquefaction zones. The FIM demonstrates a set of performance indicators that are categorised in five domains: structural, hydraulic, environmental, social and economic domains. These performance indicators are used to assess loss of wastewater system service and the induced functional impacts in three different phases: emergency response, short-term recovery and long-term restoration. Based on the knowledge of the physical and functional status-quo of the sewerage systems post-earthquake captured through the PDM and FIM, the PRM estimates restoration time of sewer networks by use of restoration models developed using a Random Forest technique and graphically represented in terms of restoration curves. The development of a decision support framework for sewer recovery after earthquakes enables decision makers to assess physical damage, evaluate functional impacts relating to hydraulic, environmental, structural, economic and social contexts, and to predict restoration time of sewerage systems. Furthermore, the decision support framework can be potentially employed to underpin system maintenance and upgrade by guiding system rehabilitation and to monitor system behaviours during business-as-usual time. In conjunction with expert judgement and best practices, this framework can be moreover applied to assist asset managers in targeting the inclusion of system resilience as part of asset maintenance programmes.
Creative temporary or transitional use of vacant urban open spaces is
seldom foreseen in traditional urban planning and has historically been
linked to economic or political disturbances. Christchurch, like most
cities, has had a relatively small stock of vacant spaces throughout
much of its history. This changed dramatically after an earthquake and
several damaging aftershocks hit the city in 2010 and 2011; temporary
uses emerged on post-earthquake sites that ran parallel to the “official”
rebuild discourse and programmes of action. The paper examines
a post-earthquake transitional community-initiated open space (CIOS)
in central Christchurch. CIOS have been established by local community
groups as bottom-up initiatives relying on financial sponsorship,
agreements with local landowners who leave their land for temporary
projects until they are ready to redevelop, and volunteers who build
and maintain the spaces. The paper discusses bottom-up governance
approaches in depth in a single temporary post-earthquake community
garden project using the concepts of community resilience and social
capital. The study analyses and highlights the evolution and actions of
the facilitating community organisation (Greening the Rubble) and the
impact of this on the project. It discusses key actors’ motivations and
values, perceived benefits and challenges, and their current involvement
with the garden. The paper concludes with observations and recommendations about the initiation of such projects and the challenges for those wishing to study ephemeral social recovery phenomena.
A video of a presentation by Richard Conlin during the Community Resilience Stream of the 2016 People in Disasters Conference. The presentation is titled, "Resilience, Poverty, and Seismic Culture".The abstract for this presentation reads as follows: A strategy of resilience is built around the recognition that effective emergency response requires community involvement and mobilization. It further recognizes that many of the characteristics that equip communities to respond most effectively to short term emergencies are also characteristics that build strong communities over the long term. Building resilient communities means integrating our approaches to poverty, community engagement, economic development, and housing into a coherent strategy that empowers community members to engage with each other and with other communities. In this way, resilience becomes a complementary concept to sustainability. This requires an asset-based change strategy where external agencies meet communities where they are, in their own space, and use collective impact approaches to work in partnership. This also requires understanding and assessing poverty, including physical, financial, and social capital in their myriad manifestations. Poverty is not exclusively a matter of class. It is a complex subject, and different communities manifest multiple versions of poverty, which must be respected and understood through the asset-based lens. Resilience is a quality of a community and a system, and develops over time as a result of careful analysis of strengths and vulnerabilities and taking actions to increase competencies and reduce risk situations. Resilience requires maintenance and must be developed in a way that includes practicing continuous improvement and adaptation. The characteristics of a resilient community include both physical qualities and 'soft infrastructure', such as community knowledge, resourcefulness, and overall health. This presentation reviews the experience of some earlier disasters, outlines a working model of how emergency response, resilience, and poverty interact and can be addressed in concert, and concludes with a summary of what the 2010 Chilean earthquake tells us about how a 'seismic culture' can function effectively in communities even when government suffers from unexpected shortcomings.
