A new National Disaster Response scheme has been created which will see insurers become a single point of contact for disaster-related claims.
Insurers and the EQC have confirmed a deal which will see all claims handled by private insurers.
It follows the commencement of the Natural Disaster Response Model between the EQC and eight insurers, announced in November last year.
As of June 30 Kiwis will go through their insurer only. Previously, customers needed to go through the EQC as well as their insurer.
The new process will only include insurers involved in the original agreement with the EQC; AA Insurance, Ando (Hollard), Chubb, FMG, IAG, MAS, Vero and Tower.
Insurers will assess and settle both the EQC and insurers’ portions of claims.
“The improved model gives customers simplicity and clarity at a time they need it most,” Sid Miller, EQC chief executive said.
Vero described the new model as a “collaborative” approach, and the culmination of several years’ work with the EQC following the Christchurch and Kaikoura earthquakes.
Campbell Mitchell, Vero’s executive general manager for claims, said: “The Canterbury earthquakes demonstrated that New Zealand’s dual insurance model resulted in double-handling of claims for customers.
“Vero has continued to advocate for a new approach and we are proud of the role that our business has played in this new model, which will significantly improve the claim experience for New Zealanders who are affected by a disaster.”
Vero and EQC piloted a joint response model following the 2015 Valentine’s Day earthquake. The approach was adopted by other insurers following the Kaikoura earthquake.
Mitchell added: “The new model will better leverage Vero’s expertise and capacity, and fundamentally improve the way we can support New Zealanders affected by a natural disaster.”
“It’s a huge step in the right direction to enable us to respond faster, more efficiently and deliver more certainty for our customers.”
Mitchell described the agreement as a “major milestone” for the insurance sector.
“In their moment of truth, New Zealanders need their insurer to help them get their lives back to normal as quickly as possible and I believe that this new model will empower us to be there for our customers when they need us most.”
