As part of the last phase in our earthquake claims auditing work we prepared and submitted to the Ministry of Business, Innovation and Employment (MBIE) our report on our reflections of our experiences and concerns relating to the insurance industry’s performance in the management of earthquake claims. We also made recommendations for changes to the claims management process.
Our objectives in preparing the report were:
- To develop effective regulations modifying the behaviour of EQC and the insurance industry to ensure consumer interests are secured.
- To restore the confidence of the insuring public in the industry.
- To make the industry accountable to a government agency with the necessary authority to discipline individual companies for delinquent behaviour as a result of not applying good faith to their activities.
MBIE requested our permission for our report to be provided to the Public Inquiry into the Earthquake Commission. Subsequently the directors of KSL Audit met with Dame Silvia Cartwright and her legal counsel to discuss our report and our recommendations for upgrading and improving the claims management process for future events.
Dame Sylvia gave us a very fair and extensive hearing and we felt it appropriate that all our clients now received a copy of the report.
We also attach an extract from the MBIE Options Paper – Conduct of Financial Institutions, Section 101 which summarises information from our document.
We trust that we have represented your concerns accurately within this document.
Regards
Kevin Seque
Extract from MBIE Options Paper