Kaikoura earthquake update
14 Aug 2017
The Insurance Council reports that as at 31 July private insurers are 50% settled or partially settled for residential and commercial claims nationally for the 14 November earthquake.
“We are pleased with our steady rate of progress and continue to have a high level of confidence that the majority of people will have received settlement offers by the end of this year. Sixty two percent of all residential buildings had been assessed by the end of July compared with 51% in June, 39% in May, 32% in April and 19% in March. Insurers continue to focus on the most damaged areas and we are pleased that assessment progress is at 86% for the Upper South Island as at end of July” said Insurance Council Chief Executive Tim Grafton.
Private insurers have received over 43,000 claims, of which over 31,000 are for residential properties. Insurers are acting as agents for the Earthquake Commission (EQC) and are managing most of the building and contents claims. These claims and costs do not include any claims that EQC is managing for the Kaikōura earthquake nor where insurance has been purchased off-shore.
The total value of insurance claims for the 14 November Kaikōura earthquake as at 31 July 2017 is $1.94 billion with most of the losses in commercial claims at $1.41 billion, with residential claims amounting to nearly $0.5 billion.
The Upper South Island is north of the Waimakariri River and takes in Hurunui, Kaikōura and Marlborough districts.
In terms of residential settlements, 43% had been fully or partially settled by end of July compared with 36% in June, 29% in May, 21% in April and 11% in March” he said.
The time between assessment and settlement offer for residential properties is typically between 4 and 12 weeks.
For commercial claims, 72% by number had been fully or partially settled by the end of July, compared with 67% in June, 62% in May, 57% in April and 44% in March. In dollar terms, over $429 million of commercial claims have been partially or fully settled.