Bay Harbour: November 09, 2016

Wednesday November 9 2016
BAY HARBOUR
PAGE 19
EQC UPDATE KEEPING YOU INFORMED | NOVEMBER 2016
EQC pays $495 million in the past year to
settle Canterbury claims
EQC Chief Executive Ian Simpson
The Earthquake Commission paid
out nearly half a billion dollars to
settle claims in Canterbury in the
year to 30 June 2016, its recently
released annual report shows.
The annual report includes lots of detail
about the work EQC has been carrying
out in Canterbury in the past year.
Figures in the report show that in the
2015/16 financial year, EQC paid out
$495 million in claims for the 2010-2011
Canterbury earthquake sequence.
This total was made up of $441 million
for residential building claims (both for
cash settlements and managed repairs),
$46 million for residential land claims
and $8 million for contents claims.
IN THE
FINANCIAL YEAR
TO
30 JUNE 2016 EQC PAID OUT
$495 MILLION
MADE UP OF $441 MILLION
FOR RESIDENTIAL BUILDING CLAIMS,
$46 MILLION FOR RESIDENTIAL
LAND CLAIMS AND $8 MILLION
FOR CONTENTS CLAIMS.
EQC has now spent $9.4 billion
(including claim handling expenses,
excluding GST) in its response to the
2010-2011 Canterbury earthquakes.
This sum has been financed from the
Natural Disaster Fund and by the
reinsurance cover EQC had negotiated
prior to the earthquakes.
EQC recovered about $444 million
of the cost of Canterbury claims,
largely from international reinsurers,
in 2015/16.
EQC also paid out $25 million for claims
other than those from the 2010-2011
Canterbury earthquakes. This includes
$4.7 million for claims from the
February 2016 earthquakes.
AT 30 JUNE 2016,
EQC HAD
COMPLETED
REPAIRS
ON MORE THAN 67,000 HOMES,
SETTLED 187,000 CONTENTS
CLAIMS, COMPLETED CLAIMS
FOR LAND DAMAGE TO
66,000 PROPERTIES.
In Canterbury, as at 30 June 2016, EQC
had completed repairs on more than
67,000 homes, settled 187,000
contents claims and completed claims
for land damage to 66,000 properties.
“By the end of the year we aim to
have cash settled the more than
14,000 claims from the February 2016
earthquakes,” says Chief Executive
Ian Simpson.
Mr Simpson reaffirmed EQC’s ongoing
commitment to Canterbury in 2017.
“In the upcoming year, EQC will
continue to be present in Canterbury
resolving remedial requests on
properties where we have managed a
repair. There is also a range of
administrative and financial tasks to be
completed.”
AS AT 30 JUNE 2016,
EQC HAD PAID OUT
$9.4 BILLION
IN RESPONSE TO THE 2010-2011
CANTERBURY EARTHQUAKES.
THIS MONEY CAME FROM THE
NATURAL DISASTER FUND
AND REINSURANCE.
Mr Simpson says that EQC has adequate
funds to continue to operate and to meet
its financial obligations and settle claims.
“There is always a high level of
uncertainty when it comes to settling
claims. For instance with home repairs,
the true extent of damage may only
become clear once repairs begin and
tradies start ripping off weatherboards
or lifting floorboards.
IN ADDITION,
AS AT 30 JUNE 2016
EQC HAD PAID OUT
$4.7 MILLION
FOR CLAIMS ARISING FROM THE
FEBRUARY 2016 EARTHQUAKES
IN CANTERBURY.
“Because of this uncertainty, we have
built a margin into our estimates of what
the Canterbury claims will cost.
“In the event that we did need to use all
of this margin, the Crown has confirmed
in writing that it will meet its obligations
under the Earthquake Commission Act to
ensure that EQC can meet all its liabilities
as they fall due,” Mr Simpson says.
The EQC Annual Report shows that EQC
received about $280 million in premiums
and spent $210 million on expenses,
excluding claims payments and claims
handling expenses for the 2010-2011
Canterbury earthquake sequence.
“Our largest expense was the $150
million in premiums for reinsurance,
which currently provides New Zealand
with access to $4.69 billion in cover
for natural disasters, once the cost of
these events exceeds the deductible,”
Mr Simpson says.
A copy of the EQC Annual Report
2015/16 can be downloaded from the
EQC website.
Canterbury students
head to Chile for
earthquake conference
Five engineering students from University of Canterbury will be
attending the World Conference on Earthquake Engineering
(16WCEE) in Chile this January thanks to sponsorship from EQC and
the NZ Society for Earthquake Engineers (NZSEE).
EQC’s Research Strategy and Investment Manager Richard Smith says the
sponsorship goes partway to supporting students and practitioners to
attend the conference, which is the preeminent gathering of engineers
involved in seismic resistant design.
“WCEE is to earthquake engineers what the Olympics are to sport. This
opportunity gives these students exposure to ideas and knowledge from
around the globe as well as the chance to forge international connections
that will be of value to their research and to New Zealand.
“EQC plays an important role in funding and facilitating research about
natural hazard risk. Part of that is making sure we have researchers within
New Zealand who have the capability to undertake that research.”
Mechanical engineering PhD student Jarrod Cook says the chance to
attend 16WCEE will be invaluable. “I’m exploring ways a ratcheting,
tension-only device can reduce the motion experienced by buildings
during an earthquake, and therefore limit the damage and impact to
people as well as enabling buildings to stay open after the event. WCEE is
the premier conference in earthquake engineering so this is a great way
to share my ideas, get critical feedback and see what others are doing.”
WCEE is held every four years and provides attendees with the
opportunity for a global exchange of knowledge, ideas, research
results and practical experience. As well as students from Canterbury,
EQC and NZSEE are jointly sponsoring the attendance of five students
from Auckland University and four industry representatives from across
New Zealand.
From left to right: Jarrod Cook, Pavan Aninthaneni and Amir Malek are three of
five University of Canterbury students heading to Chile for the World Conference
on Earthquake Engineering this January.
CONTACT EQC AT 0800 DAMAGE (0800 326 243) OR VISIT WWW.EQC.GOVT.NZ