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Saturday, 30 June 2012

EQC - Apportionment model under development

According to the Australian website EQC and insurers are working together to develop an apportionment model.

From the article (here), dated 25 June 2012:
New Zealand’s Earthquake Commission (EQC) and insurers are working on a modelling system that will enable them to apportion costs between the Canterbury earthquakes and speed up claims resolution.
The reinsurers who are covering around 90% of private insurers’ costs from the Canterbury earthquakes will have to approve the proposal.
Insurance Council of New Zealand CEO Chris Ryan says insurers and the EQC have analysts working through data from the events to try to apportion costs, and once they have a model they will put it to reinsurers.
“Reinsurers have to be comfortable with the solution,” he said. “If not, it won’t be able to be done.”
The industry has been able to work on the modelling approach following last year’s NZ High Court ruling that decided how liability per event applied to the EQC and private insurers.
If the model has yet to be finished, and approved by reinsurers, it is curious that some apportionment decisions have already been made. As assessments and reassessments are underway, the question arises of whether the model will be built to fit the information gathered, or information will be gathered to fit the model? Or, will it all be redone once the model is complete?

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