Saturday, July 12, 2014

Just More One Size Fits all.

And when that ill-fitting cover  is required, it will be again exposed as completely inadequate.

I would wish someone to do a Thesis on the efficiency of the EQC levy funds:
1 collected.
2 invested.
3 applied.

Then a study on the totally inefficient conversion of a fund gathering socialist inspired minor Government organisation of a few clerks and an investment manager, set up to collect levy monies and invest them,   into a risk assessment, claim adjustment, payout organisation competing for staff with a long established industry active in that specialist market over decades and suddenly forced to deal with an explosive increase in their workload on September 4th 2010

Today Kiwiblog covers a brain fart from Plughead to have EQC levies collected as part of local body  rates.
Great, that will exclude renters including all state housing, mobile homers, those in tied housing and the homeless, but they will still expect compensation sure as night follows day.
Wont Len Brown, Lianne Dalziel, Dave Cull and Co be rubbing their hands at the prospect of even more money to be exploitable for their dreams of greatness, what are you saying they will pass it on, Mat McCarten among others didn't.

Why not stop the nonsence and leave insurance to the market and either build a state owned re-insurance fund from taxation or stay away from the very complicated market all together and just treat a Seismic disaster as just another major disaster and make an appropriate central government response.
What is the EQC component of the billions of rebuild money.

There have been many cases where the EQC/Fletcher Building response has been woefully inadequate with too many cases where deferred and scheduled maintenance has been paid out in excesss of damage sustained in any or many of the tremors..

On September the 4th 2010, EQC was a very small government department charged with collecting levies on insurance company  premiums and investing them. No checks or reference as to how that all turned out but I am guessing there were many instances of loss and poor performance involved.

That small bunch of clerks was forced to then morph into a full on Insurace company including risk managers, claim assessors, fraud investigators, contract managers and payout processors.
All fully funded and operative divisions of each and every Insurance company with skin in the game already facing a serious upsurge in activity.
So where were the exponentially increased staff requirements for EQC to be found. certainly not down at DSW and not all in NZ.
So an adhoc bunch of retired industry people augmented by a bunch of retired cops, fishermen and well rewarded holiday makers from overseas, suddenly found an unexpected opportunity to augment retirement funds.
Add in the very confused components of what was actually covered by EQC, the arbitrary One hundred stacks plus GST, the appointment of the rather opportunistic extra layer of bureaucracy from Fletchers and efficiency,  reason, fairness and equity rapidly dissolved.

Four years on and the list of disgruntled who expect to be covered with no loss and precious little input to solve a problem are still waiting for a politician to harvest their vote, are still clamoring with pathetic souls such as Cosgrove Dyson and Cunliffe in the lead only too willing to oblige.
Another bunch with no cover (and no levy applied) expecting to be fully compensated,  the first of many legal wrangles reaching Court over what is now claimed as inadequate repair and the mess just gets bigger.

There are all too many instances of deferred and due maintenance being carried out as EQ repair, too many people waiting for repairs before they die, too many examples of squeeky hinges getting oil while a humble pensioner just sits and waits shivering through a fourth cold winter, and far too many fortunes being made from the total ballsup that has ensued from the disaster.

Here's an Idea Plughead, wont garner votes but will certainly make the next disaster more manageable, affordable, fair and equitable.
Let the people make their decisions and get your sticky fingers out of peoples  wallets.
If they choose not to insure, and that has been going on for years along with under-insurance for many, many reasons, rest assured it wont change.
A decision that has a potential for potential personal disaster but it is a choice made for whatever reason and will be carried by that decision maker not added to the cautious careful, security minded ratepayer already adequately taking responsibility for his own life.

Not how a socialist sees the world sadly, I know


Anonymous said...

In 1980 New Zealand did form its own Reinsurance Company capitalised by 33 local Insurance companies, quietly sponsored by the Government/Treasury request in respect of the Balance of Payments leaving the country to pay for EQ reinsurance.
It ran for 14 years but was realistically undercapitalised, and after the 1987 Sharemarket crash, at which time the company was fully cashed up and David Lange's cup of tea, the Shareholders having lost a fortune themselves elsewhere looked to where they could recover some of their losses. After 14 years the Shareholders stripped their capital back and the company gently folded.
Reinsurance is not an easy business - I know I was in it,in many parts of the world, for over 40 years. I came to New Zealand to become CEO of that company, which I did from birth to gentle euthanasia.
If anybody is thinking again of starting another Reinsurer after the Christchurch experience then lock them in a looney bin.
The large world wide Reinsurers who still support New Zealand Insurers have capital and structures far greater than New Zealand's GDP.

Angry Tory said...

You still don't get it. Four years on, you still don't get it. "Rebuilding" Christchurch is a leftist marxist fantasy.

California, Japan, Manilla -- don't have earthquake insurance.

Wellington especially, Christchurch, aren't earthquake "risks" they are earthquake "certainties". You can't insurance against a certainty.

The government should abolish EQC, and end all legal liability for earthquake damage in NZ - resulting in full personal responsibility - owners of houses or buildings are personally responsible for any rebuilding or demolition after earthquakes.

No running crying to the government, to insurers foolishly mislead about risk profiles (by government seismologists), to EQC or ACC or to anyone you can't see in a mirror.

The government should just have called in the RAAF to demolish Christchurch CBD & Lyttleton and left it all to rot.