The Claimants Reference Group (CRG) hopes a partnership with private insurers, announced today (2 November 2020) will enable them to focus on better outcomes for Claimants, however is sounding a warning.
The CRG says they see a number of positives in the arrangement between EQC and private insurers including one point of
contact, no need to file two claims, no need for EQC and insurer to double up on assessments, and the insurers are much
better resourced to be ready to go following an event.
However, the CRG believes there are some fundamental problems that the proposed insurer-led model / insurer response
model (IRM) does not address.
CRG Chair, Ali Jones, says it doesn’t solve one of the critical findings in Dame Silvia’s report, which is all about
assessment of damage, no matter who is undertaking that assessment - EQC, private insurer or contractors, and it must be
thorough, consistent and accurate.
“In her report (Assessment of Damage, pg 13 of her report) Dame Silvia says… “it is abundantly clear to me that
thorough, consistent and accurate assessments of damage underpin the integrity and outcome of the entire process.” As we
have seen as recently as last Friday, IAG’s process was “flawed” – as identified by Justice Gendall (Sleight case), so what faith should claimants have in a private insurer led model?” says Jones.
The decision by EQC follows a trial after the Kaikoura earthquake, which saw the private insurer manage EQC’s claims.
“We believe that the outcomes for Kaikoura Claimants may not have been adequately reviewed and we are still waiting for
details EQC says it has on this. It would be great to know that claimants are in fully and correctly repaired homes, but
who would know? Direct feedback from some Claimants to the CRG on what happened in Kaikoura post-quake, does not align
with what we have heard from EQC, and we believe it is essential to base a major decision like this on all of the
facts.”
The CRG is pleased that EQC is keen to implement Dame Silvia’s recommendations, however questions the Insurance Council
of New Zealand’s comments today that this will “ensure a more effective and efficient response, delivering simplicity
and certainty for customers during a very stressful time”.
Jones says unless assessments of damage are thorough, consistent and accurate, partnering with the private insurer is
not going to address the significant issues claimants have faced, and continue to face, many years on.
“We do think that this is a wonderful opportunity for EQC to now be able to focus on quality, enduring outcomes, and
reducing distress for claimants,” says Jones.