Download - Insurance Council of New Zealand

More documents

Recommendations

Info

ick buildings potentially uninsurable for earthquake. The involvement of banks establishing the security of their investments in property and other aspects of insurance has been highlighted and banks are likely to build much stronger and closer relationships with insurers in the future. The affordability of insurance post-earthquake will be a real issue with significant increases in premiums likely to continue, and a much greater awareness of risk by insurance companies. The policy issues for the insurance sector and government going forward will be establishing a much more sustainable structure for the Earthquake Commission, and establishing what it is covering and what it is not, and in particular reducing any duplication of services between the Earthquake Commission and the private insurance industry. 16
Profound changes will come from the earthquakes; insurance will change, buildings will change and people will need to be aware of risk in any investment they make. The Insurance Council is likely to raise the affordability issue with government with growing concern that a trebling of the earthquake levy, a possible increase in Fire Service taxes, and a recently increased level of GST, all of which are attached to the original private insurance policy cost, will see affordability issues arise and a potential for a reduction in the levels of insurance. The levels of taxes and other levies attached to private insurance premiums will need to be reduced. The effects of the Canterbury earthquake will be felt for years to come. It featured 7 in the Top 10 insured loss events in the last 30 years on an international scale 17 according to a prominent reinsurance broker’s data. Many buildings that were thought to be up to modern Code did not survive the earthquake. Already tenants and owners as reassessing the risk of buildings, and their ability to be tenanted is being determined by their ability to withstand significant quakes. There is likely to be a strong and ongoing dialogue between the private insurance sector and central and local government in coming years to establish and rectify all the issues that have been exposed by the enormity of the earthquakes of 2010, 2011 and 2012. In the face of all this upheaval, the insurance industry was required to carry on with its normal daily business paying claims for fire and flood damaged homes, replacing items stolen as a result of crime, and the myriad of other ‘bread and butter’ operations that our industry achieves for ordinary New Zealanders on a daily basis.
Page 1 and 2: www.icnz.org.nz Insurance Council R
Page 3 and 4: President’s Report New Zealand Tr
Page 5 and 6: “Cantabrians and New Zealanders h
Page 7 and 8: One of the most impressive aspects
Page 9 and 10: Chief Executive’s Report The resp
Page 11: 9 We Remember We remember those who
Page 14 and 15: education, and inner city retail we
Page 17: safety reasons on the Christchurch
Page 21 and 22: Marine Hull and Cargo 12 months to
Page 23 and 24: The Insurance Council of New Zealan

Download - Insurance Council of New Zealand

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?