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.
Post-earthquake most people would say it was difficult to find housing in Christchurch. But reports suggest that the market has flattened. And terraced housing and apartments are sitting empty. Christchurch Council finance committee chairman, Councillor Raf Manji, discusses future developments like The East Frame.
Hon STEVEN JOYCE to the Minister of Finance: Can he confirm he plans to increase net core Crown debt from $59.5 billion as at 30 June 2017 to $67.6 billion by 2022; and can he confirm debt will not increase by any more than that?
MARAMA DAVIDSON to the Minister of Conservation: What has been the Department of Conservation’s biggest recent success in predator control to better protect our native plants and wildlife?
Hon Dr JONATHAN COLEMAN to the Minister of Health: What measurable outcomes, if any, will his policies deliver?
SIMON O'CONNOR to the Minister of Corrections: Does he stand by his Government’s intention to reduce the prison population by 30 percent over the next 15 years; if so, how?
KIERAN McANULTY to the Minister of Transport: Has he received any reports commissioned under the previous Government that show the value of investment in rail?
Hon JACQUI DEAN to the Minister of Tourism: Does he stand by all his statements?
Hon GERRY BROWNLEE to the Prime Minister: Does she stand by all her statements?
Dr DUNCAN WEBB to the Minister for Greater Christchurch Regeneration: What was the expected date, prior to the General Election, that the Residential Advisory Service would cease operations, and what steps has she taken since becoming Minister to ensure the service continues for people affected by the Canterbury and Kaikōura earthquakes?
BRETT HUDSON to the Associate Minister of State Services (Open Government): Does she stand by her statement in Parliament yesterday that this will be “the most open, most transparent Government that New Zealand has ever had”; if so, how?
Hon LOUISE UPSTON to the Minister for Children: Is she committed to implementing the United Nations Convention on the Rights of the Child in full?
TAMATI COFFEY to the Associate Minister of Finance: How is the Government preserving the right of New Zealanders to own land in New Zealand?
JAMI-LEE ROSS to the Minister of Local Government: What steps will she take to support the local government sector to achieve greater efficiency and control spending?
ANDREW LITTLE to the Prime Minister: Does he stand by his statement that “Nick Smith has dealt with some of the most complex problems of resource law and housing more successfully than any other politician here could have”; if so, in what ways, if any, does he think the housing situation for New Zealanders has improved under Hon Nick Smith?
BRETT HUDSON to the Minister of Finance: What steps is the Government taking to improve productivity in the public service?
MARAMA FOX to the Minister of Health: Does he agree with counsellor Andrew Hopgood, regarding P addicts, that “… a lack of detox and live-in rehabilitation centres limits options for addicts seeking help”; if so, what is he doing to address this shortage?
JONATHAN YOUNG to the Minister for Economic Development: What update can he give on ways the Government is supporting economic development in the Gisborne region?
CHRIS HIPKINS to the Associate Minister of Education: How many schools across the country are currently using libraries, halls, and other areas not intended for regular teaching as temporary classrooms?
ANDREW BAYLY to the Minister of Justice: What recent announcements has she made regarding phase two of the anti-money laundering and counter-financing of terrorism regime?
CATHERINE DELAHUNTY to the Minister for the Environment: Will he put a moratorium on bottled water exports, in response to a 15,000 strong petition and nationwide rallies on water issues taking place today?
KELVIN DAVIS to the Minister for Māori Development: Does he have confidence that his leadership of Te Puni Kōkiri and its programmes are resulting in the best outcomes for Māori?
MAUREEN PUGH to the Minister of Education: What announcements has she made about the Government’s education-related Better Public Services targets?
Dr DAVID CLARK to the Minister of Health: How much did the Canterbury District Health Board receive from the Government for mental health and addiction services support in response to the Kaikōura earthquake, after paying off the debt of Kaikōura’s health centre?
Rt Hon WINSTON PETERS to the Minister of Foreign Affairs: Does he stand by all his statements; if so, why?
Dr PARMJEET PARMAR to the Minister for Disability Issues: What recent announcements has she made regarding a nationwide transformation of the disability support system?
METIRIA TUREI to the Minister for the Environment: Ki Te Minita mō Te Taiao: Ka tukua e ngā paerewa e whakaarohia akehia nei mō te pai ake o te wai i roto i te pūhera Wai Mā, te kaha kē atu, te iti kē iho rānei o te uru atu o te tūkinotanga ki roto i ō tātou awa wai, e ngā mea whakakapi?
Translation: Do the proposed standards for water quality in the Clean Water package allow more pollution or less to enter our waterways than the ones they will replace?
BRETT HUDSON to the Minister of Finance: How much is the Government committing to spend on infrastructure over the next 4 years?
ANDREW LITTLE to the Prime Minister: Given his predecessor told the Pike River families, “I’m here to give you absolute reassurance we’re committed to getting the boys out, and nothing’s going to change that”, when, if ever, will he be announcing the re-entry of the drift?
STUART SMITH to the Minister of Transport: What announcements has he made recently regarding the Government’s commitment to reinstate key transport links following the Kaikōura earthquake?
JACINDA ARDERN to the Minister for Children: When was she first notified that the Ministry for Vulnerable Children Oranga Tamariki, or its predecessor CYF, were placing children and younger persons in a hotel or motel for short-term care without a supervisor, and what was her first action, if any?
MELISSA LEE to the Minister of Health: Can he confirm that 55,000 care and support workers will share in the $2 billion pay equity settlement announced on 18 April 2017?
GRANT ROBERTSON to the Minister of Finance: Does he agree with the Dominion Post editorial that his Government has “singularly failed to answer the pressures of Auckland”; if not, why does he think they would write this?
ANDREW BAYLY to the Minister for Building and Construction: How do the latest reports on the level of building activity in Auckland and nationwide for the month, quarter, and year compare with 2016?
Rt Hon WINSTON PETERS to the Prime Minister: Does he stand by all his statements; if so, how?
PHIL TWYFORD to the Minister of Transport: Why has the completion of the $2.4 billion Western Ring Route been delayed, and when can Aucklanders expect the new motorway to be open?
EUGENIE SAGE to the Minister of Conservation: Is it Government policy to increase the logging of native forests on West Coast conservation land?
Dr MEGAN WOODS to the Minister supporting Greater Christchurch Regeneration: Does she agree that the first homes in the East Frame will be completed 5 months ahead of schedule?
Questions to Members
CLARE CURRAN to the Chairperson of the Commerce Committee: Does she intend to call for further submissions on the petition of Dame Fiona Kidman before it is reported back to the House, in light of the recently released footage shot inside the drift of the Pike River mine?
SARAH DOWIE to the Minister of Finance: What reports has he received on New Zealand’s trade exports?
EUGENIE SAGE to the Minister for Land Information: Has he asked Land Information New Zealand to withdraw the 997-hectare Riversdale Flats from the proposed sale of Mt White Station pastoral lease; if not, why not?
PHIL TWYFORD to the Minister for Social Housing: Will she confirm that as of 30 June the Government has only delivered 323 of the additional 1,400 emergency beds they promised at the start of November last year?
STUART SMITH to the Minister of Transport: What update can he provide on the reinstatement of State Highway 1 following the Kaikōura earthquakes?
STEFFAN BROWNING to the Minister for the Environment: Does he have confidence in the Environmental Protection Authority’s review of glyphosate?
Dr DAVID CLARK to the Minister of Health: Does he support the establishment of a cross-agency working group with Canterbury District Health Board on their finances, funding, and facilities?
DAVID SEYMOUR to the Minister of Health: Does he stand by all his answers to Oral Question No. 6 on 6 June regarding intraoperative radiotherapy for breast cancer?
BARBARA KURIGER to the Minister of Immigration: What recent announcements has he made in relation to immigration settings?
Hon NANAIA MAHUTA to the Minister for Treaty of Waitangi Negotiations: Does he believe that the signing of the Pare Hauraki Collective Settlement with the inclusion of redress disputed by Tauranga Moana iwi is a breach of Te Tiriti o Waitangi?
CHRIS BISHOP to the Associate Minister of Education: What recent announcements have the Government made on school property in the Wellington region?
PITA PARAONE to the Minister for Māori Development: Does he stand by all his statements; if so, why?
JENNY SALESA to the Minister of Education: Is she satisfied that the Government is doing all that it can to ensure an adequate supply of teachers, particularly in Auckland?
Successful urban regeneration projects generate benefits that are realised over a much longer timeframe than normal market developments and benefits well beyond those that can be uplifted by a market developer. Consequently there is substantial evidence in the literature that successful place-making and urban regeneration projects are usually public-private partnerships and involve a funder, usually local or central government, willing to contribute ‘patient’ capital. Following the 2010 and 2011 earthquakes that devastated the centre of Christchurch, there was an urgent need to rebuild and revitalise the heart of the city, and increasing the number of people living in or near the city centre was seen as a key ingredient of that. In October 2010, an international competition was launched to design and build an Urban Village, a project intended to stimulate renewed residential development in the city. The competition attracted 58 entrants from around world, and in October 2013 the winning team was chosen from four finalists. However the team failed to secure sufficient finance, and in November 2015 the Government announced that the development would not proceed. The Government was unwilling or unable to recognise that an insistence on a pure market approach would not deliver the innovative sustainable village asked for in the competition brief, and failed to factor in the opportunity cost to government, local government, local businesses and the wider Christchurch community of delaying by many years the residential development of the eastern side of the city. As a result, the early vision of the vitality that a thriving residential neighbourhood would bring to the city has not yet been realised.
PHIL TWYFORD to the Minister for Building and Construction: Does he agree with Mainfreight founder and Chairman Bruce Plested that housing is a “social disgrace”, that the market cannot sort out this problem, and that real leadership and intestinal fortitude is needed now?
JONATHAN YOUNG to the Minister of Finance: What reports has he received on real after-tax wages rising in New Zealand?
CHRIS HIPKINS to the Minister of Education: Will she apologise on behalf of the Government for the flawed handling of the Canterbury school mergers and closures after the 2011 earthquakes; if not, why not?
ANDREW BAYLY to the Minister for Building and Construction: What progress has the Government made in improving the tenancy laws and guidance for dealing with the problem of methamphetamine testing and contamination?
CARMEL SEPULONI to the Associate Minister for Social Housing: What motels has the Government purchased in response to the increased emergency housing demand, and how much has this cost?
RON MARK to the Prime Minister: Does he stand by all his statements on the Clutha-Southland electorate office issue even if facts known to him make doing so extraordinarily difficult?
MAUREEN PUGH to the Minister of Corrections: How is Budget 2017 investing in rehabilitation and reintegration outcomes for offenders?
Hon DAVID PARKER to the Minister of Local Government: Does she agree with the Prime Minister’s answer yesterday that drinking-water contamination in Havelock North was “about local government performance and overseeing ratepayer-funded assets whose purpose is to deliver clean and healthy water to its local people. The extensive inquiry into that incident was warranted by widespread illness in the area ... it is about local body performance in overseeing their clean water system”?
BRETT HUDSON to the Minister of Local Government: What recent announcements has she made regarding Wellington’s resilience to natural hazards?
JULIE ANNE GENTER to the Minister of Transport: Will the Government start building rail to the airport sooner if Auckland hosts the next America’s Cup regatta or will Aucklanders still have to wait 30 years?
STUART NASH to the Minister of Police: Does she have any concerns about any of the results of the New Zealand Police Workplace Survey 2017; if so, what in particular?
ALASTAIR SCOTT to the Associate Minister of Education: What recent announcements has he made to improve school infrastructure in the Wairarapa?
