Insurers settle $2.7 billion
07 Feb 2017
- Media release ICNZ
The Insurance Council of New Zealand announced today that private insurers have paid out nearly $2.7 billion in 2016 to settle commercial and residential claims resulting from the 2010 and 2011 Canterbury earthquakes. Of the $2.7 billion, $1.6 billion was for domestic claims and $1.1 billion was commercial claim payments.
In 2016 private insurers settled 3,860 over cap property claims and had 1,258 new over cap claims transferred from EQC. Insurers completed construction on 1,470 properties and cash settled 2,390 properties in 2016. Of the 1,470 properties where construction was completed, 907 were rebuilds and 563 were major repairs.
“A total of 171 properties were transferred to insurers from EQC in the last quarter of 2016, a sharp fall from the 290 the previous quarter. The slow-down of overcaps coming across from EQC and the settlement progress in 2016 is encouraging. However, it will be critical to ensure the response to the Kaikoura earthquakes does not slow the pace of settlement of the remaining claims as quickly as possible” said Tim Grafton, Chief Executive of the Insurance Council (ICNZ).
Grafton said “insurers have now fully settled $19.4 billion, or 86% of over cap residential Canterbury earthquake claims and 95% of all residential property claims. Over 95% of Commercial claims have now been settled.”
Based on data jointly collected by ICNZ and the Ministry of Business, Innovation and Employment (MBIE), 89% (23,685) of all over cap residential claims are resolved or have been fully settled. Resolved means the repair/rebuild is under construction, in consenting or a building contract has been signed. A further 9% (2,283) of the 26,608 over cap claims are in resolution, meaning the rebuild/repair is in the pricing and design process or cash settlement is pending.
Of the properties still to be completed, the number of customers who are still to receive offers from their private insurer is down to 217 and there are 240 properties where people have yet to make decisions on the offers they’ve received, and 183 new claims being validated.
“Customers who have queries or concerns should seek help from the Residential Advisory Service (RAS). RAS is cost-free, totally independent and can help provide advice and assistance that may help people progress their claim. This service won’t be around forever and so we are urging people to make contact with the RAS or their insurer if they are unsure about the offer they’ve received” he said.
For further details see this link “Canterbury Earthquake Progress Stats Q4 2016”.