Kaikōura earthquake claims over $1.5bn

The total value of insurance claims for the Nov.14, 2016 Kaikōura earthquake in New Zealand is over NZ$2 billion ($1.5 billon) as at Aug. 31, 2017, according to the Insurance Council of New Zealand.

Most of the losses were commercial claims, recorded at NZ$1.48 billion ($1.08 billion), with residential claims amounting to nearly NZ$0.55 billion ($400 million).

Private insurers are confident that the majority of Kaikōura earthquake and Edgecumbe flood settlement offers will be complete by year-end.

“2017 has been a huge year for New Zealand with earthquakes, floods and fires hitting us hard,” said Tim Grafton, chief executive of the Insurance Council of NZ. “Private insurers are committed to 90 percent of Edgecumbe insured residents being back in their homes by Christmas.”

“We said we would have the majority of Kaikōura earthquake settlement offers made by year end. We are over half way and ahead of expectations” Grafton said.

Nationally, private insurers are 59 percent settled or partially settled for residential and commercial claims for the Nov. 14 earthquake.

In terms of residential settlements, 53 percent had been fully or partially settled by end of August compared with 43 percent in July and 36 percent in June, Grafton said.

Private insurers have received nearly 44,000 claims, of which nearly 32,000 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.

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