Can NZ pay for quakes – maybe, maybe not
EQC has new reinsurance cover to cope with more disasters.
Can New Zealand afford to pay for more earthquake disasters?
It depends on the magnitude.
But last month the Earthquake Commission announced that it had concluded its 2013 reinsurance negotiations with full placement of a $3.25 billion cover programme at rates similar to last year’s.
“We have ongoing cover sufficient to meet the costs of a significant disaster, although perhaps not at the levels experienced in Canterbury,” according to EQC chief executive Ian Simpson.
The placement, which compares with $2.5 billion in the previous programme, was 10% over-subscribed, and has a provision for one reinstatement after an event.
Mr Simpson says the ongoing support of international reinsurers underpins the New Zealand insurance market.
The seismic events of the past couple of years were unique in insurance history, especially the land damage due to liquefaction, and the associated requirement for extensive geotechnical investigations.
EQC received 467,000 claims made up of 736,000 building, land and contents “exposures”, one of the largest insured events ever.
Chris Hutching
Mon, 22 Jul 2013
Mon, 22 Jul 2013
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Can NZ pay for quakes – maybe, maybe not
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