Quake insurers get poor performance ratings
Business interruption has been identified as the biggest insurance problem for firms following the February earthquakes in 2011.
Business interruption has been identified as the biggest insurance problem for firms following the February earthquakes in 2011, according to a recent New Zealand Manufacturers and Exporters Association (NZMEA) survey.
The survey, conducted between the 13th and 17th of February this year, asked respondents to rank their insurers from ‘very good’ to ‘very poor’ regarding overall performance, rolling over policies, material damage and business interruption, along with the collection of comments.
Worst ratings went to business interruption claims, with half of the respondents involved in the survey reporting their insurer had been ‘very poor’, giving merely a 20% positive rating.
Insurers did however rate the best in rolling over policies with half of all respondents giving them a positive ranking.
John Walley, chief executive of NZMEA, says, “The indemnity period for business interruption ran out on February 22 for half of the firms surveyed so it is not surprising that business interruption was the biggest issue.”
“The comments centred on payments being too slow making it difficult for firms to meet costs, and fine print making it difficult to substantiate a claim.
“Delays in dealing with material damage mean that repair and the business lost while they occur, will take place outside the business interruption indemnity period for some firms.
“There is a view that the indemnity period should be extended in these cases and there is some talk of legal action if insurers do not comply.
“Its is pleasing to see policies getting rolled over, even if premiums and excesses are increasing, and it is noticeable that where insurance companies have communicated the reasons for delays then they have tended to enjoy better ratings,” added Mr Walley.
“It is important that this performance improves and insurers start to take on new risks so that firms can get back to focussing on their own activity rather than building and insurance distractions.”
Robert McCambridge
Tue, 28 Feb 2012
Tue, 28 Feb 2012
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Quake insurers get poor performance ratings
19085