Re-insurance still long way off for Canterbury

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Sat, 17 Sep 2011 6:06p.m.

Gerry Brownlee said reinsurers are reluctant to help

Gerry Brownlee said reinsurers are reluctant to help

By Jenny Suo

Earthquake Recovery Minister Gerry Brownlee has returned from meetings with overseas re-insurers reporting that premiums will go up and that for the moment it will not be possible to get new insurance contracts in Canterbury.

That will severely limit the ability of Cantabrians to rebuild their region.

They have been rugby starved but today Christchurch fans got a taste of the Rugby World Cup with a visit from the Scotland rugby team nd a cheque for more than $85,000.

Scotland captain Alastair Kellock says rugby makes the world a very small place.

“I was lucky enough to play with Daryl Gibson, Dave Hewitt and I know people who have been directly affected by the earthquake.”

But it is a reality check Cantabrians are in for when it comes to their city's rebuild.

Speaking on The Nation this morning, Gerry Brownlee said reinsurers are reluctant to help.

“They're saying we've had huge losses here, we don’t know that this event has fully settled and we don’t want to be risking the capital of their particular business out there, knowing they could lose it.”

That means it is almost impossible to get insurance for new building projects and most are stalled.

Christchurch city councillor Yani Johanson says the need for insurance is “absolutely urgent, it has been urgent for a number of months now”.

“It’s just unbelievable that it still hasn’t been resolved. We want businesses to stay in Christchurch and we want it as easy as possible for them to do so.”

So with no indication when reinsurers may cover Christchurch again, the Government is working to reassure them and entice them back.

“We are going to provide the science, we are going to make sure building codes are stronger so that when you do return o the market, you will be insuring buildings that are much more resistant to damage in the future,” says Johanson.

In the meantime, reinsurers are saying New Zealand’s been under-priced for a while, premiums around the world are going up after a bad 12 months and Cantabrians can expect their insurance premiums to rise by about 15 percent.

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Comments

18 Sep 2011 02:34p.m.

IlamVoter wrote:

Brownlee's record of non-achievement just gets better and better. Canterbury rebuild: stalled. Christchurch reinsurance: failed. Full and open information for red-zone landowners: refused. Efforts to preserve Christchurch's remaining heritage and character: none. Elected representatives on CERA or review panel: none. Assistance and encouragement for business investment: nil. Action to halt Christchurch's growing unemployment rate: zero. Response to any questioning of the above: bluster and belligerence. Someone should remind this woeful underachiever he has a performance review set for November 26.

18 Sep 2011 12:02p.m.

Just Saying wrote:

So it took a tax-payer funded trip to Europe to tell Gerry Brownlee what was blindingly obvious before he even left these shores. Nice one Gerry ! This trip was probably only arranged to make it 'look' like the government Earthquake Minister was doing something in an election year. So why not do what you are actually paid to do Gerry, sack Ian Simpson, and bring in genuine accountability to the Earthquake Recovery, rather than some over paid cronies. Then when you have done with that, stand aside yourself for someone who might actually give a damn. Of course to hold the EQC accountable, the government would have to acknowledge that they were advised by the previous CEO that the EQC would in all likelihood fail in a major event, but chose to manage the risk . . .

18 Sep 2011 08:23a.m.

nikki wrote:

I'm so sorry for the people who lose out! but what's happening is absolutely logical in our socciety where money rules the world and financial profit dictates human actions. earning money simply by investing it for creating interests proves to be so destructive for the general human wealth. When you sign up for any big corporation be it insurance or banks - this is what you get. they invest money ONLY where ever it is profitable, but when this chance is gone the support of the financial world is gone, too. Logical since they can't earn , it's spending time!! Best thing to do: boykott the bastards in the first place and build alternative networks. there are some financial institutes around, like ethically investing Bank "Prometheus" or one can pool money in trusts e.g. if our priority changes from profit to the well being of people you rather invest in education and skills instead. One has to accept the fact that possession like everything has a limited lifespan! Skills on the other hand stay with you all your life....