'EQC not running out of money'
"We are simply being dangled on the line of convenience at the mercy of an industry based purely on self-interest."
Featured commentEQC is not running out of money.
That was one of the messages today from EQC chief executive Ian Simpson and Earthquake Recovery Minister Gerry Brownlee.
Mr Simpson says EQC is “far from broke”. It had called on $3 billion from its natural disaster fund, would call on $4 billion from reinsurers and could call on another $1 billion if necessary from the government underwriting guarantee.
Raising the compulsory insurance disaster levy to 15c in the dollar meant that EQC would build up reserves to about $6 billion again in the next 30 years, Mr Simpson says.
The pair gave more assurances about the speed of Christchurch’s rebuild at a media conference at the Canterbury Earthquake Recovery Authority headquarters.
Earlier in the week NBR ONLINE sent Mr Simpson a series of questions about why the insurance settlement process was taking so long.
Journalists echoed those queries at the media conference today.
The full answers will be published in the NBR print edition tomorrow.
Today, Mr Simpson revealed some of this information to describe how busy EQC has been and the volume of work under way.
But he acknowledged that finalising all settlements could still be nine months away – and that only involves EQC’s part in the process.
Following EQC’s settlement, reinsurers will then process the claims or part claims where “apportionment” is an issue – the part that EQC pays and the portion that insurers pay.
Only after the claims are finally processed will the most affected homeowners be placed in the Fletcher queue for repairs.
Messrs Brownlee and Simpson confirmed that few major repairs were complete, with most of the work so far on painting, plastering and other non-structural work.
Mr Brownlee was bullish about the work “ramping up”.
He also said it was unacceptable for insurers to claim they were awaiting geotechnical report. They already had them via EQC.
The minister expressed frustration that reinsurers were telling him they were awaiting information from insurers, and insurers were saying they still needed confirmation from reinsurers.
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Comments and questions5
Earthquake claimants with insurance in fact have no contractual relationship with EQC, only with their insurer. We are simply being dangled on the line of convenience at the mercy of an industry based purely on self-interest.
The insurers should be meeting their obligations in a timely fashion, rather than deferring claimants for months or years.
Apportionment simply facilitated Fletcher to claw in more expensive repairs, EQC was spared the expense of paying caps and the Insurer freed from further responsibility. Perfect for every one of the players - except the claimant.
Well said !!
EQC and its old guard, the single most deceitful organisation its ever been my misfortune to engage with. They are still wracked with incompetence and the primary insurers are using this as an excuse to weasel out of obligations.
'EQC not running out of money'. Uh... not unless the next Big Shake hits Welly or Christy.
"Only after the claims are finally processed will the most affected homeowners be placed in the Fletcher queue for repairs."
The 'most affected' - i.e., those who are over the $100K cap - do not go into the Fletcher queue. Somebody is confused here.
You are dead right bunter, it is all just smoke and mirrors to cover up the incompetency and selfishness of all those invoved at the expense of the claimants. Shame on you all.