The Kaikōura Earthquake

EQC’s approach to the Kaikōura earthquake was different to that of the Canterbury earthquake sequence.  Primarily, EQC and most of the private insurers agreed that the private insurers would act as EQC’s agents in assessing and settling claims – sometimes referred to as the “agency model”. 

A month after the Kaikōura earthquake, EQC and eight private insurers (of 10 present in the residential market) signed a memorandum of understanding, setting out how private insurers would act on EQC’s behalf in handling claims of the event. From EQC’s perspective, the Kaikōura earthquake provided an opportunity to pilot the agency model.  EQC and the private insurers could test how they could work together to deliver a better service to customers, in a manner that was more efficient and cost-effective from the perspective of both EQC and the private insurers. If a successful model was established, EQC and the private insurers could then discuss its use for future events.

Unlike other briefings which we have provided to the Public Inquiry, the Kaikōura earthquake briefing does not contain a lessons learned section. While we have been able to get a glimpse of some of the lessons from the Kaikōura earthquake, more work needs to be done to refine these. As the Kaikōura response is still ongoing, and EQC is focused on developing the agency model, work to refine these lessons will be undertaken later this year. The briefing does, however, give an indication of what could be considered in a lessons learned exercise in future. 

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