New natural disaster insurance model coming

0
661

The construction sector will be one of the beneficiaries from a recently announced new partnership between the Earthquake Commission (EQC) and private insurers that will provide an improved, more collaborative approach to supporting New Zealanders through natural disasters in the future.

Under the new partnership, from the second quarter of 2021, anyone with home insurance whose home or land is damaged in a natural disaster will only need to lodge one claim through their private insurer.

“These arrangements will ensure that customers can deal with their insurer, who will assess, manage and settle their claim,” Insurance Council of New Zealand chief executive Tim Grafton says.

“This will ensure a more effective and efficient response, delivering simplicity and certainty for customers during a very stressful time.”

Eight private insurance companies — AA Insurance, Chubb, FMG, Ando (Hollard), IAG, MAS, Vero and Tower — have worked with EQC on the partnership model, with a singular focus on improved customer outcomes.

New agreements

Under the new agreements, private insurers will manage the total claim, including the EQC portion up to the statutory capped level of damage, and then any claim under their private insurance to cover additional losses up to their sum insured.

Under the partnership, insurers will also provide data to EQC about where insured homes are located, so EQC can better model its exposure to natural hazards.

EQC is now working with the individual insurers to satisfy requirements needed for the model.