Rebuild Statistics

Canterbury Earthquake Progress Statistics Q1 2017

May 8, 2017

For details on the Canterbury Earthquake Progress Statistics Q1 2017, please click here.

Insurers settle 2.7 billion Canterbury claims in 2016

February 7, 2017

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”.

Insurers settle 19 billion Canterbury claims

November 1, 2016

The Insurance Council of New Zealand announced today that private insurers have paid out nearly $19 billion to settle commercial and residential claims since the Canterbury earthquakes in 2010 and 2011, of which nearly $9 billion was for domestic claims.

Chief Executive Tim Grafton said “insurers have now fully settled 94% of all Canterbury earthquake residential properties.  This represents 21,859 over cap and 63,739 out of scope properties.  We have also settled 95% of commercial claims worth $9.9 billion as at 30 September 2016”.

Of the properties still to be completed, the number of customers who are still to receive offers from their private insurer is down to 352 and there are 440 properties where people have yet to make decisions on the offers they’ve received, and 172 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.

Based on data jointly collected by ICNZ and the Ministry of Business, Innovation and Employment (MBIE), 87% (23,012) 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% (2,461) of the 26,437 over cap properties are in resolution, meaning the rebuild/repair is in the pricing and design process or cash settlement is pending.

Insurers have completed 6,448 major repairs and rebuilds and cash settled 15,411 properties to the end of September 2016.

Insurers have had an additional 290 properties transferred from the Earthquake Commission (EQC) in the last quarter taking the total to 1,443 for the last 12 months.

For further details see the attachment “Canterbury Earthquake Progress Stats Q3 2016”.

Insurers settle 18 billion Canterbury claims

August 10, 2016

The Insurance Council of New Zealand announced today that private insurers have paid out over $18 billion to settle commercial and residential claims since the Canterbury earthquakes in 2010 and 2011, of which over $8.6 billion was for domestic claims. 

Chief Executive Tim Grafton said “private insurers expect to have the vast majority of claims settled by the end of the year.  Insurers have now fully settled 93% of all Canterbury earthquake residential properties.  This represents 21,005 over cap and 63,545 out of scope properties.  We have also settled 94% of commercial claims worth $9.75 billion as at 30 June 2016”. 

The number of customers who are still to receive offers from their private insurer is down to 340 and there are 453 properties where people have yet to make decisions on the offers they’ve received.  

“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. 

Based on data jointly collected by ICNZ and the Ministry of Business, Innovation and Employment (MBIE), 85% (22,317) 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 11% (2,712) of the 26,147 over cap properties are in resolution, meaning the rebuild/repair is in the pricing and design process or cash settlement is pending.  

Insurers have completed 6,114 major repairs and rebuilds and cash settled 14,891 properties to the end of June 2016.   

“Insurers have had an additional 394 properties transferred from the Earthquake Commission (EQC) in the last quarter taking the total to 1,620 for the last 12 months. It is extremely frustrating for homeowners and insurers to be receiving so many new property claims nearly six years after the events which stresses the need for changes in the future.  Insurers should do all assessments for future natural disasters so that the most damaged properties can be rebuilt or repaired much sooner” he said.  

For further details see here.

Insurers settled 83,000 Canterbury properties, including 20,000 over cap

May 9, 2016

The Insurance Council of New Zealand announced today that private insurers have settled 20,000 Canterbury earthquake over cap residential property claims in its latest release of quarterly progress data.

Chief Executive Tim Grafton said “insurers have now fully settled 91% of all Canterbury earthquake residential properties.  This represents 20,000 over cap and 63,000 out of scope properties.  We have also settled 93% of commercial claims worth $9.6 billion as at 31 March 2016”.

Based on data jointly collected by ICNZ and the Ministry of Business, Innovation and Employment (MBIE), 84% (21,588) 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 12% (3,112) of the 25,753 over cap properties are in resolution, meaning the rebuild/repair is in the pricing and design process or cash settlement is pending.

Insurers have completed 5,715 major repairs and rebuilds and cash settled 14,283 properties to the end of March 2016.

“Insurers have had an additional 403 properties transferred from the Earthquake Commission (EQC) in the last quarter taking the total to 1,553 for the last 12 months. It is extremely frustrating for homeowners and insurers to be receiving so many new property claims five and half years after the events which stresses the need for changes in the future.  Insurers should do all assessments for future natural disasters so that the most damaged properties can be rebuilt or repaired much sooner” he said.

The number of customers who are still to receive offers from their private insurer is down to 275 and there are 407 properties where people have yet to make decisions on the offers they’ve received.

“Anyone who is unsure about the offer they’ve received can contact either their insurer or the Residential Advisory Service.  The service is cost-free, totally independent and can help provide advice and assistance that may help people progress their claim,” said Grafton.

For further details see “Canterbury Earthquake Progress Stats Q1 2016”.

Insurers settle 20% more claims in 2015

February 1, 2016

Private insurers are on track to settle the vast majority of Canterbury earthquake claims by the end of this year, the Insurance Council announced today.

Nearly 5,400 major repairs and rebuilds were settled in 2015 which reflected a 21% rise in the settlement rate last year compared with 2014.

“Insurers are continuing to make a major contribution to Canterbury and the New Zealand economy and are committed to settling the remaining claims as quickly as possible.  The rate of progress in 2015 was impressive for one of the biggest events this country has ever known in terms of damage” says Tim Grafton, Chief Executive of the Insurance Council (ICNZ).

Grafton says “insurers have now fully settled $16.7 billion, 75% of over cap residential Canterbury earthquake claims and 89% of all residential property claims.  Over 90% of Commercial claims have been settled and this figure will be much higher when the $635m Christchurch City Council settlement is included.”

At the end of December 2015, there were 25,350 over cap residential claims with 1425 transferred from the Earthquake Commission (EQC) in the last year.

Based on data jointly collected by ICNZ and the Ministry of Business, Innovation and Employment (MBIE), 82% (20,726) 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 13% (3,414) of the 25,350 over cap claims are in resolution, meaning the rebuild/repair is in the pricing and design process or cash settlement is pending.

For further details please see the attachment “Canterbury Earthquake Progress Stats Q4 2015”.

Insurers Settle $16 billion Canterbury Claims

November 9, 2015

The Insurance Council of New Zealand announced today that private insurers have settled $15.9 billion in Canterbury earthquake claims in its latest release of quarterly progress data.

Insurance Council (ICNZ) Chief Executive Tim Grafton says insurers have now settled 70% of over cap residential Canterbury earthquake claims in what reinsurers have termed as one of the most complex natural disaster insurance recoveries ever.

At the end of September 2015, there were 24,994 over cap residential claims with 467 transferred from the Earthquake Commission (EQC) in the last quarter, taking the total transferred from EQC since September 2014 to 1813.

Based on data jointly collected by ICNZ and the Canterbury Earthquake Recovery Authority (CERA), 79% (19,734) 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 16% (3,928) of the 24,994 over cap claims are in resolution, meaning the rebuild/repair is in the pricing and design process or cash settlement is pending.

“Insurers are continuing to make a major contribution to Canterbury and the New Zealand economy and are committed to settling the remaining claims as quickly as possible.  We’d encourage any customers who are unsure about the offer they’ve received or have yet to make a decision to contact either their insurer or the Residential Advisory Service.  The service is cost-free, totally independent and can help provide customers advice and assistance that may help progress their claim,” says Grafton.

The number of customers who are still to receive offers from their private insurer is down to 465 and there are 314 people who have yet to make decisions on the offers they’ve received.

For further details please see the attachment “Canterbury Earthquake Progress Stats Q3 2015”.

PDF  Canterbury Earthquake Progress Stats Q3 2015  (510KB)

Insurers settle record Canterbury claims

August 10, 2015

The Insurance Council of New Zealand announced today that private insurers have settled a record number of residential claims in the last quarter since the Canterbury earthquakes in 2010 and 2011.

Insurance Council Chief Executive Tim Grafton says there has been a nearly 40% increase in the last quarter and is the highest number of claims settled of any quarter to date. The value of all residential and commercial claims settled is well over $15 billion.

Private insurers have settled 66%, or over 16,000, over cap residential Canterbury earthquake claims, including over 1,500 in the quarter to 30 June 2015, or equivalent to nearly 17 properties a day.

Insurance Council Chief Executive Tim Grafton says “the pace of settlements has ramped up and the evidence suggests that contrary to recent commentary reported in the media about the rate of recovery, we are continuing to see more residential settlements than ever.

Insurers continue to make a major contribution to Canterbury and the New Zealand economy and are committed to settling the remaining claims as quickly as possible.

At the end of June 2015, there were 24,527 over cap residential claims with 327 transferred from the Earthquake Commission (EQC), taking the total transferred from EQC since January 2015 to 602.

Based on data jointly collected by ICNZ and the Canterbury Earthquake Recovery Authority (CERA), 75% 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 19% of the 24,527 over cap claims are in resolution, meaning cash settlement is pending or the rebuild/repair is in the pricing and design process.

Grafton says “while cash settlements remains an option for many homeowners, the increase this quarter in settlements is for both cash settlements and rebuilds and repairs. Insurers completed 596 major repairs and rebuilds in the last quarter, bringing the total to 4053 to the end of June 2016.

To date 12,153 over cap claims have been cash settled which has allowed people to buy another home or manage their own rebuild or repair.

The number of customers who are still to receive offers from their private insurer is down to 488 and there are 358 people who have yet to make decisions on the offers they’ve received.

“We’d encourage any customers who are unsure about the offer they’ve received or have yet to make a decision to contact either their insurer or the Residential Advisory Service. The service is cost-free, totally independent and can help provide customers advice and assistance that may help progress their claim,” says Grafton.

For further details please see the following link : Canterbury Earthquake CERA Progress Stats Q2 2015 (513KB).

 

Insurers Settle $15 billion Canterbury Claims

May 11, 2015

The Insurance Council of New Zealand announced today that private insurers have paid out almost $15 billion to settle commercial and residential claims since the Canterbury earthquakes in 2010 and 2011, of which over $6 billion was for domestic claims.

Private insurers have settled almost 15,000 over cap residential Canterbury earthquake claims, including 1,100 in the quarter to 31 March 2015, or equivalent to 12 properties a day .

At the end of March 2015, there were 24,200 over cap residential claims with 275 transferred from the Earthquake Commission (EQC) in the first three months of the year, taking the total transferred from EQC since January 2014 to 2,238.

“Insurers are working constructively with EQC to better understand how many more will be coming over in 2015 because we’re mindful that there are still customers who have yet to be transferred to their insurer or are in dispute with EQC over the status of their claim,” says Insurance Council Chief Executive Tim Grafton.

“It’s not only frustrating for the remaining customers who are still to be given a clear pathway to resolution but also insurers who still don’t know what their total liability is going to be,” says Grafton.  “We’d urge customers who are in dispute with EQC over whether they’re under or over cap to make sure their insurer is aware that they’re still in the negotiation as this is something insurers may not have visibility over.”

Based on data jointly collected by ICNZ and CERA, 71% 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 23% of 24,200 over cap claims are in resolution, meaning cash settlement is pending or the rebuild/repair is in the pricing and design process.

In spite of the many complications, insurers completed 3,457 major repairs and rebuilds by the end of March 2015.

“In the first 3 months of 2015, a further 567 houses were repaired or rebuilt through the private insurer-managed programmes but while the number of dwellings being completed in a quarter has increased, the process of repairing and rebuilding in Christchurch is still taking a lot longer than many insurers would like,” says Grafton.  “Some insurers have responded by actively encouraging customers to look at cash settlement options, which allows customers to settle their claim and to take control of their repair/rebuild programme now rather than join an insurer-managed rebuild or repair queue.”

To date 11,200 over cap claims have been cash settled which has allowed customers to buy an existing home and manage their own major repair or rebuild.  About 6,000 of those claims were red zone.

The number of customers who are still to receive offers from their private insurer is down to 570 and there are 430 customers who have yet to make decisions on the offers they’ve received, some of these are ‘undecided’ customers.

“We’d encourage any customers who are unsure about the offer they’ve received or have yet to make decision to contact the two free and independent claim advisory services operating in Christchurch, the Residential Advisory Service (RAS) or Canterbury Insurance Advisory Service (CIAS).  Both services are completely cost-free, totally independent and can help provide customers advice and assistance that may help progress their claim,” says Grafton.

For claims out of the scope of EQC, 89% of the 64,576 have been fully settled.

PDF  See additional information graphs (482 KB)

Private Insurers Pay Out $14 Billion Settling Canterbury Earthquake Claims

February 16, 2015

Private insurers have paid out almost $14 billion in settling Canterbury earthquake claims, with more than 80% of all Canterbury earthquake commercial and out of scope claims completely settled.

The Insurance Council of New Zealand announced today that at the end of December 2014, $8.17 billion had been paid to settle commercial claims and $5.69 billion for domestic claims resulting from the Canterbury earthquakes in 2010 and 2011.

“This is a significant contribution towards the estimated $40 billion economic loss suffered in Canterbury, which has allowed business and households to recover and rebuild almost four years after the tragic February 2011 earthquake,” says Insurance Council Chief Executive Tim Grafton.

It’s estimated that 83% of all commercial claims are now settled.

Based on statistics from a quarterly survey of insurers conducted by the Canterbury Earthquake Recovery Authority (CERA), 84% or 53,698 of all ‘out of scope’ claims, such as pathways, driveways and fences, had been settled at the end of 2014.

The survey indicates that for residential dwellings, 57% or 13,566 of claims above the Earthquake Commission (EQC) cap of $100,000 plus gst (known as over cap claims) have been fully settled.

However, a further 36% or 8,594 over cap claims have been agreed between the customer and insurer and are either under construction, in the rebuild-repair queue or about to be cash settled – confirming that 93% of all over cap claims are settled, resolved or in resolution.

Of the 13,566 over cap claims settled, 10,676 have been cash settled and 2,890 were completed rebuilds and repairs. Cash settlement is a choice people make when they want to manage their own repairs or rebuild and may include purchasing another property.

“We expected a substantial ramp up in over cap settlements in 2014 and this was evidenced by private insurers settling about 1,100 over cap claims each quarter which is a 50% increase on the quarterly rate from the previous year,” says Mr Grafton.

In 2014, private insurers settled 4,447 over cap claims but were also transferred a further 1,963 over cap claims from the EQC, taking the total number of over cap claims to 23,925, up from 23,181 at the end of September 2014.

“We’re very conscious of the substantial number of claims that EQC has had to deal with and these represent a tiny proportion of their total claims, but we also recognise the frustration of customers whose claims have just reached or are yet to get to their private insurer. We have had constructive discussions with EQC and they are working hard to provide us with more clarity and certainty about the claims that will go over cap in 2015,” says Mr Grafton.

“While there will be more over cap settlements coming insurers’ way in 2015, even at this quarterly settlement rate we’re confident that the majority of over cap claims will be fully settled by the end of 2016 target,” he says.

“There are still some complications with claims involving multi-unit buildings, retaining walls and land issues, but private insurers are working in a concerted effort with EQC, CERA and local authorities to overcome the hurdles,” he says.

“Insurers and EQC have also been working constructively on how to improve responsiveness in the event of a major event. And the Insurance Council is also developing proposals on how we believe claims can be managed better for all concerned in future. These initiatives follow the recent release of the new Fair Insurance Code that includes timeframes for acknowledging and determining claims as well as keeping people informed about the progress of their claims,” says Mr Grafton.

See additional information graphs (PDF 643KB)

Settlement of Canterbury Earthquake Insurance Claims Continues Apace, Topping $13 Billion

October 31, 2014

The settling of Canterbury earthquake private insurance claims continues apace as pay outs hit the $13 billion mark, advancing at $10 million a day in 2014.

The Insurance Council of New Zealand announced today that at the end of September 2014 insurance companies had settled $8 billion in commercial claims and $5 billion in residential Canterbury earthquake claims.

“The $13 billion paid out to date is a significant contribution to the Canterbury economy and also a tangible demonstration that insurers have their foot firmly on the pedal, ensuring the pace of settlements hasn’t dropped off in 2014, even when many complexities still remain,” says Insurance Council Chief Executive Tim Grafton.

“In 2014 alone, insurers have paid out $2.7 billion to settle residential and commercial claims, the equivalent of $10 million a day,” says Mr Grafton.

At the end of September 2014 insurers had settled 72% of all residential over cap claims and out of EQC scope claims, up from 66% at the end of the June 2014 quarter.

In over cap claims, insurers had a further 442 transferred from EQC during the September quarter taking the total number of over cap claims to 23,181 (previously 22,739 at the end of June 2014).

Private insurers have fully settled 12,461 or 54% of all over cap claims, including 2,622 major repairs and rebuilds, up 419 from 2,203 in Q2 2014.

The data confirms 1,069 over cap claims were settled during Q3 2014.

There were 9,839 customers who received cash settlements, including approximately 6,000 red zone settlements, up 650 from the Q2 figure of 9,189.

Of the 10,011 customers who chose insurer-managed rebuilds or repairs, 26% (2,622) are fully completed, 16% (1,618) are currently under construction, 3% (315) in consenting, and 8% (791) under contract. The remaining 4,666 (47%) are in the pricing or design process.

The number of undecided customers has also dropped significantly from 1,218 in Q2 2014 to 580 – almost half of those customers currently have their cases before the courts. Customers who have yet to receive an offer from their insurer now stands at 1,140, down from 1,169 the previous quarter.

“The number of undecided customers has more than halved from the previous quarter as insurers and advisory services have put significant effort into helping customers understand the offers presented to them,” says Mr Grafton.

“Many of the 1,140 customers yet to receive settlement offers are in complex shared properties where assessments are still ongoing,” he says.

Those customers who are yet to receive offers or are undecided, has dropped to 7% of the total over cap claims, down from 10% in the previous quarter

“While many complicated issues still remain such as complex shared properties walls, retaining walls, flood, EQC land compensation settlements and mass land movement, the pace of settlement has not dropped off and insurers are still confident that almost all residential claims with be settled by the end of 2016,” says Mr Grafton.

Insurers have settled 78% (50,428) out of scope claims, up from 72% in Q2 2014.

ENDS

 

Canterbury Earthquake Insurance Settlements Key Statistics 3rd Quarter (Sep) 2014
Insurance Claims Settled

$13 billion paid out in Canterbury earthquake claims at the end of September 2014

  • $8 billion in commercial claims
  • $5 billion in domestic claims
Q3 2014 Q2 2014
Over Cap Claims

23,181 total over cap claims

12,461 (54%) fully settled, including:

  • 2,622 rebuilds/major repairs
  • 9,839 cash settled

10,720 (46%) remaining

  • 7,389 rebuild/repairs in progress, including:
    • 1,618 under construction
    • 315 in consenting
    • 791 under contract
  • 997 awaiting cash settlement
  • 580 Undecided (2% of total over cap)
  • 1,140 No Offer (5% of total over cap)
22,739

11,392 (50%)

  • 2,203
  • 9,189

11,347 (50%)

  • 8,110
    • 1,611
    • 442
    • 1,089
  • 850
  • 1,128
  • 1,169
Out of Scope

64,272 out of scope claims

  • 50,428 (78%) fully settled
64,320

  • 46,317 (72%)

 

For more information contact:

Tim Grafton, ICNZ Chief Executive on (027) 270 9084 or Samson Samasoni (021) 852 083.

 

Canterbury Earthquake Insurance Settlements Top $12 Billion

August 1, 2014

Insurance payouts for Canterbury earthquake claims has topped $12 billion, according to the Insurance Council of New Zealand.

In line with insurer projections, 2014 looks set to be a watershed year for the Canterbury earthquake insurance claims as 80% of commercial claims and 66% of all residential claims (over cap and out of scope) have now been fully settled.

At the end of June 2014, private insurers had paid out $7.7 billion in commercial claims and $4.4 billion in settling residential claims, totaling $12.1 billion.

“Insurers are currently paying out $11 million a day to get Cantabrians back into their homes and enabling businesses to move forward,” says Insurance Council Chief Executive Tim Grafton.

Last quarter saw a major ramp up in progress with 1,517 over cap claims settled, double the previous quarter. That’s 17 claims settled daily and insurers handing over 43 repaired or newly built homes weekly to their customers.

“The settlement of Canterbury earthquake residential insurance claims has definitely reached a turning point with 50% of all over cap claims now fully settled and 72% of the out of scope claims completed,” he says.

At the end of the June quarter, insurers had 22,739 dwelling claims over the $100,000 plus GST EQC cap, according to the Canterbury Earthquake Recovery Authority (CERA) survey, 284 more than the March quarter.

“Private insurers have reached the halfway mark by fully settling 11,392 over cap dwelling claims, including the completion of 2,203 rebuilds and major repairs,” says Mr Grafton.

Of the 11,347 over cap claims remaining, 8,110 insurer-managed rebuilds and repairs are in progress: 1,611 (20% of 8,110) are currently under construction; 442 (5%) in consenting with a local authority or government agency; 1,089 (13%) under contract (when a building contract has been signed by the customer but work on site has not yet started).

The balance of insurer-managed major repairs and rebuilds are in pre design (scoping or collection of technical data), detailed design (with a designer/architect) or pricing (tender or pricing for construction).

Of the 11,347 over cap claims still to be fully settled, 1,218 are customers still undecided about their settlement offer and 1,169 have yet to be given a settlement option.  In the previous quarter there were 2,876 in these categories

“The 20% drop in the number of customers undecided or with no offers, represents the substantial effort by insurers to progress claims that may have previously been stuck,” says Mr Grafton.

“The success of the Residential Advisory Service in providing independent advice and the role community groups play in supporting residents, particularly those in vulnerable circumstances, has undoubtedly contributed to moving these claims forward,” says Mr Grafton.

The CERA survey also confirms that 9,189 claims were cash settled with a further 850 awaiting their agreed cash settlement to be finalised. It’s important to note that cash settlement can include houses that have been built or are under construction outside of the insurers’ project management offices.

“In spite of insurers receiving over 700 newly over cap dwelling claims from EQC this year, they’re still confident almost all major repairs and rebuilds will be completed by the end of 2016,” says Mr Grafton.

There were 64,320 out of EQC scope claims (e.g. pathways, driveways etc) with 46,317 (72%) now fully settled.  A further 9,112 (14.2%) are with PMOs for completion and 8,739 (13.6%) have agreed external resolution but not yet finalised.

However, Mr Grafton cautions that while insurers have their eyes firmly fixed on the end game, it’s important stakeholders and key partners don’t go into a second half lull.

“Some headway has been made with complex multi-units where insurers and other parties are finding pragmatic solutions but there are still many complicating factors outside the control of insurers that could hinder the pace of progress,” he says.

Land repair, retaining walls, Port Hills mass movement areas, customers delaying decisions, the judicial case on EQC compensation models for land with increased vulnerability to flooding (IVF) and liquefaction (IVL), contaminated land and flood zones are just some of the issues still to be fully addressed.

“We’re also still concerned about irresponsible advocates hyping up customer expectations, encouraging them to prolong their settlement by taking court action when there are free services and processes available to provide advice and facilitate dispute resolution,” says Mr Grafton.

Next update August 2014: Second Quarter of 2014

Q2 2014 Progress Stats Summary

First Quarter 2014 Canterbury Rebuild Progress Statistics

May 15, 2014

Insurers involved in the Canterbury residential rebuild have settled almost 60% of all earthquake out of scope and over cap dwelling claims, according to the Insurance Council of New Zealand.

Figures from the Canterbury Earthquake’s Recovery Authority’s (CERA) latest quarterly survey confirm insurers had settled 51,799 of 87,705 over cap and out of scope dwelling claims at 31 March 2014.

The survey shows that 41,924 (64%) out of scope dwelling claims have been settled and 9,875 (44%) over cap claims finalised.

“Combined that’s 59% of all earthquake-related insurance dwelling claims completed which demonstrates real drive by private insurers and claims management companies to resolve earthquake-related claims in Canterbury,” says ICNZ Chief Executive Tim Grafton.

“At the end of April 2014 insurers had paid out $4.06 billion in residential earthquake-related claims, $555 million of that just in the last four months,” says Mr Grafton.

The total amount paid out for earthquake-related commercial claims now stands at $7.49 billion with $782 million of that paid out in 2014, including New Zealand’s largest insurance pay out of $438 million to the Port of Lyttelton.

“To date insurers have paid out $11.55 billion and this year alone it’s the equivalent of $10 million a day to settle earthquake commercial and residential claims in Canterbury during 2014,” says Mr Grafton.

The CERA survey shows that insurers had 22,455 over cap dwelling claims at the end of March 2014, indicating that a further 493 had become over cap during the first quarter of this year. The previous quarter had 21,962 over cap dwellings.

Of the 22,455 over cap dwellings, 9,875 (44%) had been settled, 9,755 (43%) were pending settlement and 2,876 (13%) were still to be made an offer or the insured had not made a decision on their offer.

Insurers and the claims management companies had completed 1,681 major repairs and rebuilds and cash settled 8,194 claims by the end of March.

For claims outside the scope of EQC, which includes driveways, pathways and swimming pools, insurers and claims management companies had settled 41,924 of 65,250 claims by the end of March.

“Our members are still forecasting that the majority of the insurer-managed rebuild programme will be completed by the end of 2016, however there are a number of factors outside the control of insurers that could impact on this such as land repair, retaining walls, Port Hills Mass Movement Areas, multi units and customers decision delays,” says Mr Grafton.