You are here

EQC and the private insurer interface

Under the Earthquake Commission Act 1993, EQC administers a statutory scheme of first loss natural disaster insurance for residential buildings for replacement value.

The EQC and private insurer interface is an important one for a number of reasons, including:

  • the nature and extent of cover provided under the Earthquake Commission Act 1993 and how that cover interrelates with any cover that private insurers might provide in addition to that provided under the Act; and
  • EQC’s reliance on private insurers for critical data about its customers and liabilities.

It is therefore necessary for EQC to have constructive working relationships with private insurers. 

EQC’s approach to managing the interaction with private insurers has evolved over time.  From a claims assessment and settlement perspective, EQC’s focus has consistently been on developing initiatives to:

  • identify claims that were over cap for an event and informing the private insurer of those claims as quickly as possible; and
  • resolve any disagreement between EQC and the private insurer regarding their respective liabilities.

There will always be differences between EQC and private insurers because EQC is operating as a Crown entity and within the confines of the Earthquake Commission Act 1993.  The private insurers, by contrast, operate within the constraints of contracts of insurance and responsibilities to their shareholders.  Initiatives to manage the relationship between EQC and private insurers will need to recognise this contrast, whilst ensuring that the focus on EQC’s customers remains at the heart of EQC’s operations.

Briefing: EQC and the private insurer interface (PDF, 1.5MB)

Page last updated: