Tuesday, 24 February 2015

The latest assessment of the claim situation in Canterbury - Insurance Council

The Insurance Council of New Zealand has just released its latest assessment of the claim situation in Canterbury. It makes interesting reading with a total of $13.9 billion paid out by private insurers to the end of December 2014. This comprises of $5.7 billion in domestic claims and $8.2 billion in commercial claims. This is in the context of a total rebuild cost of $40 billion, of which the insurance industry will cover around $32 billion ($20 billion being from private insurers and $12 billion from EQC).

Of particular significance is the number of total over capped domestic claims (claims on housing damage of over $100,000 per house) now totalling 23,925. We have for some time been saying that the total over capped quantum of housing will be close to 25,000 and we are getting close. When that 23,925 figure is broken down 57% of the over capped claims have been settled. Interestingly of that 57% 10,676 have been cash settled and 2,890 have had the construction completed.

It is interesting to note that 45% of the claims settled have been cash settled which puts a lot of money into the hands of the insured party and gives them the responsibility for rebuilding or repairing their house. The Insurance Council tell us that there will be more over capped settlements occurring in 2015 and that they are confident that the majority of over capped claims will be fully settled by the end of 2016 target. 

As with all things insurance there will be a small but long tail, particularly involving multi-unit buildings, retaining walls and land issues. But it is clear that for the majority of insured that insurance blockages are no longer a constraint in the context of the rebuild.

Friday, 13 February 2015

What a great celebration last night!

The Cricket World Cup is officially launched. What a great celebration in Hagley Park last evening. 

The  approx 70,000 people representing our increasingly diverse culture, who turned out on a beautiful  Christchurch evening, were in celebration mood and it showed.

Not only was it a celebration of world cricket, but  it was also clearly an event that demonstrated that Christchurch is up running and celebrating what it has on offer to the world.

With the Coast to Coast, a Crusaders game, Kenny Rogers and World Cup Cricket all occurring in the same weekend the city is sizzling.

Makes you proud to be a Cantabrian.

Thursday, 5 February 2015

One month into the new year we have good cause to be positive about our lot!

Most  of us have enjoyed a magic  summer  with plenty of hot days  to enjoy the  fabulous offering of outdoor Christchurch and our region. Of course The farmers in Canterbury are paying a terrible  price right now for the continuing lack of rain and we all hope they get some serious relief  soon.

Our city  continues to benefit from the $100 million being spent every week and it is  really starting to show.

2015 will be  a year of much greater certainty and  continuing progress towards creating a new and exciting central city.

The critical issues we  a will confront on the months ahead include
  • Addressing the issues of those still significantly  disadvantaged as a result of the earthquake. Now that we are making real progress we  need to ensure that those that still need  help, get it.
  • Settling the balance of the insurance issues. The tail is diminishing but the issues are increasingly complex and potentially litigious.
  • Managing potential constraints around  labour, material supplies and  capital.
  • Driving more certainty into central city outcomes including The Frame, traffic, parking, private sector builds, key project and precinct development.
  • Identifying what our real aspirations for Christchurch City are.
  • Working out what the future of Canterbury looks like.
  • Consolidating Christchurch’s  role as the economic urban powerhouse of the  South Island.
It is  now all about realising and  maximising opportunities that  we  have before us.
Exciting times and not a moment to loose.