Publications
Annual Report
2003-2004
Chairman's Report
The Te Anau earthquake, the central North Island floods and the Bay of Plenty floods and earthquakes (post-balance date) made very plain the risks that New Zealanders run simply by living in our peaceful and beautiful land.
The disasters devastated the lives, livelihoods and homes of thousands of people in provincial New Zealand.
Most New Zealanders now live in the big cities and saw events unfolding on the television news. However, they have little concept of the stress that disaster victims experience during the rebuilding and recovery process which lasts months and sometimes years - because it ceases to be news. The Earthquake Commission team, having spent a great deal of time devising strategies and systems to deal with claims in a fast, efficient and equitable manner, performed magnificently. The hard grind of ongoing training and IT and logistical development is now paying off.
There are still lessons to be learned and we will continue to make changes and improvements because no system is ever perfect.
EQC is looking forward to working with Treasury and our Minister on the review of the Earthquake Commission scheme. We trust that the policy makers will have regard to the principle of sustainable communities in making changes to the EQC Act.
The diversification of the Commission’s Natural Disaster Fund investment portfolio has been successfully completed, during a period of huge volatility in both exchange rates and investment markets.
Although, as seen in the accounts, the diversified portfolio has proved its worth, it is too early to tell whether the current asset allocation is optimal for the Natural Disaster Fund.
There is ongoing analysis and consultation to determine the best asset allocation to match the Commission’s liability profile. That profile may itself change as a result of the Cabinet review.
The Commission requires its global equity managers to attend to the reputation of New Zealand when making investments on our behalf. The managers engage with EQC in the development of the strategies that are built into their selection processes. This is a fascinating exercise for both managers and EQC, and it is evolving in a very positive fashion.
As to the membership of the Board, one of our longest serving Board members, Jeff Todd, retired during the year. EQC would like to acknowledge the huge contribution that Jeff has made and thank him for sharing with us his wisdom and his vast knowledge and experience in matters of governance. Michael Wintringham has been appointed deputy chairman to replace Jeff, and the Board and staff join me in welcoming him to the Commission.
With a seven-person Board and a total staff of 18, EQC shoulders massive responsibilities. It manages the disaster insurance scheme, is responsible for the investment of the Natural Disaster Fund and the development of a settlement process that will one day have to deal with many thousands of claims, it resources a world class research programme, manages one of the largest reinsurance programmes in the world, and runs an education programme designed to prepare New Zealanders to face disaster. The Commission could not conceivably meet the breadth of its responsibilities without a wide range of partners and advisers and the support of our Minister, the Hon Dr Michael Cullen.
EQC has developed a new dynamic, taking a fresh look at everything it does and finding better ways to meet its responsibilities to New Zealanders. This has been facilitated by the strong relationships between the Board, our general manager, David Middleton, the staff, and all our partners, consultants and stakeholders.
Neville Young
Chairman
