Kaikōura earthquake costs insurers nearly $2 billion


The total value of insurance claims for the 14 November Kaikōura earthquake is $1.84 billion as at 31 May 2017, the Insurance Council reports

Private insurers have received nearly 43,000 claims, of which over 31,000 are for residential properties. statsnzbuilding

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 offshore.

Insurance Council Chief Executive Tim Grafton says 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 per cent of all residential buildings had initial assessments completed by the end of May compared with 32 per cent in April and 19 per cent in March.

“Insurers continue to focus on the most damaged areas and are making pleasing progress with 57 per cent assessed in the Upper South Island in May, compared with 45 per cent in April.”

In terms of residential building settlements, 29 per cent had been fully or partially settled by end of May compared with 21 per cent in April and 11per cent in March.

The time between assessment and settlement offer for residential properties is typically between 4 and 12 weeks depending on complexity.

For commercial claims, 62 per cent of all material damage claims by number had been fully or partially settled by the end of May, compared with 57 per cent in April and 44 per cent in March.

In dollar terms, over $278 million of commercial material damage claims have been partially or fully settled.