EQC Home Truths

We’ve heard that the EQC has received hundreds of new claims after yesterday’s quakes.

The questions we’d like answered are:

  1. Does it have the resources and expertise to settle all claims in a timely manner?
  2. Does it, or New Zealand, have adequate resources to deal with the Alpine Fault or the big one that is sure to hit Wellington?

Of the Masterton Quake, Farmgeek, John Hart, tweeted

How many more are there like him?

One thought on “EQC Home Truths

  1. The answer to both questions is a resounding no. EQC managers are bogans with no knowledge of insurance or claims settlement. Google the EQC Truths blog and see what is going on.

    Financially, EQC had NZD $5.6 billion before the 4 September 2010, but most of this was in New Zealand government bonds. EQC collected levies and then bought New Zealand government bonds so the useless politicians could continue spending and squandering money. This was an “asset” of EQC, but it has taken time to find investors willing to buy NZ government bonds that EQC had to sell, meaning EQC has always had cash crunches that partially explain the delays.

    The current EQC reinsurance treaty has EQC paying NZ $2.5 billion with NZ $2.5 billion in top up from reinsurers. Any amount above that is subject to the “Crown guarantee”. Of course, the guarantee just means the Crown can tax people, but I suspect a large segment of New Zealand’s productive population would head to Australia after such an earthquake. EQC itself would face up to NZ $20 billion in claims after a massive Wellington earthquake.

    New Zealand is not prepared.

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