New Zealand Law Society - Canterbury quake insurance settlements near $19 billion

Canterbury quake insurance settlements near $19 billion

This article is over 3 years old. More recent information on this subject may exist.

The Insurance Council of New Zealand says private insurers have paid out nearly $19 billion to settle commercial and residential claims since the Canterbury earthquakes in 2010 and 2011.

Chief Executive Tim Grafton says 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," he says.

Mr Grafton says 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 says.

The Insurance Council says that based on data jointly collected by itself 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.

At the end of September 2016, the Council says insurers had completed 6,448 major repairs and rebuilds and cash settled 15,411 properties.