PRIVATE INSURERS RECEIVE $1.8B KAIKŌURA EARTHQUAKE CLAIMS

The total value of insurance claims for the 14 November Kaikōura earthquake as at 31 May 2017 is $1.84 billion the Insurance Council reported today. Private insurers have received nearly 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 residential building and contents claims.  These claims and costs do not include any land claims, or house and contents claims that EQC is managing for the Kaikōura earthquake nor where insurance has been purchased off-shore. Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “Progress is now moving at a rapid pace, so we have a high level of confidence that most people will have received settlement offers by the end of this year.   Forty percent of all residential buildings had initial assessments completed by the end of May compared with 32% in April and 19% in March.  Insurers continue to focus on the most damaged areas and are making pleasing progress with 57% assessed in the Upper South Island in May, compared with 45% in April” he said. In terms of residential building settlements, 29% had been fully or partially settled by end of May compared with 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 depending on complexity. For commercial claims, 62% of all material damage claims by number had been fully or partially settled by the end of May, compared with 57% in April and 44% in March.  In dollar terms, over $278 million of commercial material damage claims have been partially or fully settled.