An independent report has called for wide-ranging reforms to speed up the resolution of outstanding EQC claims.
The report was prepared by Christine Stevenson, acting chief executive of New Zealand Customs, who was appointed independent ministerial adviser to identify ways to break through roadblocks in the settling of claims.
“The findings of this report confirm our reasons for commissioning the advice. It’s clear there’s a big job to do to get these claims moving faster, but the report contains some very good recommendations in here to improve the way EQC operates, get claims sorted and to help people move on with their lives,” said EQC Minister Megan Woods.
“The report reveals sizeable issues with staffing levels, data quality, record-keeping and organisational culture and structure that are holding back resolution of claims."
Woods said the recommendations fell into several broad categories: those EQC will have the responsibility for implementing, those Treasury and the Ministry of Business, Innovation and Employment need to work with EQC on, and those that will require a wider approach.
“I have asked Dame Annette King, the interim board chair, to consider these recommendations right away and to swiftly implement appropriate measures,” Woods said.
The recommendations include hiring more staff to reduce the caseloads for case managers so claimants could get more personal attention, establishing a claimant reference group, comprised of claimants and community representative advocates who are paid for their time and expertise to advise EQC on how to improve the treatment of their customer, making any claimant’s EQC file available to them on request and introducing a standard for better communication with claimants.
Stevenson also recommended having a team of experienced EQC staff to pull out all the physical claims files relating to the remaining claims, and have the team sort, review, confirm and capture the key data to ensure it is correct, as well as increasing government monitoring to improve accountability.
“There are also broader recommendations which we will begin work on including looking to allow EQC more flexibility to make cash settlements above the EQC cap, which would then be recovered from the private insurers,” Woods said.
“Another recommendation we are beginning work to implement will be to significantly scale up the Residential Advisory Service which provides independent help to claimants. This service has helped resolve over 4000 outstanding claims and we want to make it even better.”
Woods said she had asked for a group of executives of other government agencies to come together to implement the recommendations.
Insurers welcomed the report.
Tower chief executive Richard Harding said his company has long maintained that the current EQC system was broken.
After Kaikoura, the insurers formed the first point of contact for all aspects of the claim, acting as an agent for EQC. This streamlined the process.
He said it was fairer to implement a six-year limitation period from the day the claim was settled, not the date of the original event.
