Showing posts from July 22, 2012

Assigning insurance policies

The Press has an article on the problems with assignment of insurance policies written by Duncan Cotterill lawyers Richard Lang and Stephanie Grieve. It is a useful article and provides some background along with observations on how to handle the situation. The article is here. It is also on the Duncan Cotterill websitehere.There appear, to my layman's eye, to be four significant errors of fact or issues in the article.The first is in the paragraph that reads:The problem now is that IAG and Vero say they are not obliged to repair or replace properties for buyers who have taken an assignment of the seller's insurance claim. Instead, the insurers will pay the buyer the indemnity value.So far all news from IAG and Vero has been to the effect that repairs will be honoured but, should a damaged property turn out to be too expensive to repair, the new owner will be paid out the indemnity value. The following is from a Press article on the 21st of July (here):IAG and Vero's appro…

Alpine fault

The website Science Daily has an article on the alpine fault (here). This news has been reported in New Zealand, but the Science Daily approach is less emotive.The introduction reads:A new study published in the journal Science, co-authored by University of Nevada, Reno's Glenn Biasi and colleagues at GNS Science in New Zealand, finds that very large earthquakes have been occurring relatively regularly on the Alpine Fault along the southwest coastline of New Zealand for at least 8,000 years. The team established that the Alpine Fault causes, on average, earthquakes of around a magnitude 8 every 330 years. They estimate the 50-year probability of a large Alpine fault earthquake to be about 27 percent.The University of Nevada, Reno media release is here.

Council communication audit report

The audit report has been released, and is to be considered by Council next Tuesday.The Council’s take on the report, accentuating the positive, is:The review found that the Council was doing an excellent job keeping people informed about the projects and services it delivers; it especially praised the Share an Idea community engagement initiative around the Draft Central City Plan. It also pointed to recent resident surveys which show residents do not understand the Council’s decision-making process. The report makes a series of recommendations which it says outline "a need for Council (elected members and management) to adopt a culture of open communication and engagement with residents and stakeholders so that the Council can build understanding and mutual support for its objectives, plans and decisions".The review is less enthusiastic in a number of areas. It can be downloaded from the bottom of the web page here.

Police explosions and gunfire coming up in Burwood

According to a Press online article, Burwood residents (Queensbury Street area) can anticipate hearing explosions and gunfire from Red Zone properties this week as police undertake training. Remaining residents will be visited, signs put up, and pamphlets distributed.The article is here.

London underwriters have business interruption cover issues over Christchurch

Australian website has an article (here) on the concerns being felt by London underwriters on the issues associated with business interruption insurance, and the extent to which tougher regulations on strengthening buildings will affect the cost of repairs and rebuilding.A couple of points of interest are the observations:“… reinsurers are closely watching Christchurch business interruption issues because of their much larger exposure to the Thai floods, where disruptions to manufacturing caused global disruption in a range of industries.” “…insurers and reinsurers want to know the extent to which the Christchurch City Council can increase seismic strengthening requirements for buildings that have to be replaced or repaired.” Any policy or legal gains made by businesses here, have the potential to set undesirable precedents for the global insurance industry. Similarly, if the council is able to require that rebuilds and repairs meet new and tougher codes, then insura…

Ansvar credit downgrade

Ansvar (now ACS NZ Ltd.) credit rating was downgraded last week by insurance rating agency A.M.Best. The following is A.M.Best’s full media release (on line here).HONG KONG, JULY 17, 2012
A.M. Best Co. has downgraded the financial strength rating to B- (Fair) from B+ (Good) and issuer credit rating to “bb-” from “bbb-” of ACS (NZ) Limited (New Zealand). Both ratings have been placed under review with developing implications, which reflects the company’s near-term regulatory risk. These rating actions acknowledge ACS’ risk-adjusted capitalization and its separation from Ecclesiastical Insurance Office plc (EIO) (United Kingdom) as well as the potential vulnerability of ACS’ capital position. Following the recently approved Scheme of Arrangement, EIO has strengthened ACS’ capital position. Also, EIO is providing additional reinsurance cover (to extend the cover up to NZD 570 million) to extend reinsurance protection for the February 2011 earthquake event.
However, ACS’ current risk-adjus…