Challenges in Managing Residential Earthquake Insurance: A Post-Disaster Review

Abstract

This paper examined the challenges associated with the management of the dual EQC-private insurance model offered in New Zealand after the Canterbury earthquake disasters. A mixed-methods approach comprising survey and semi-structured interviews were adopted in the study. The research findings highlighted key challenges associated with the dual insurance model that impeded post-disaster residential reconstruction. These challenges include policy holder’s lack of knowledge of insurance policy underwritings and entitlements, high cost of insurance premiums and deductibles, and a complicated claim management process. Main recommendations proposed from this study to improve the post-disaster claims management processes, should another earthquake occur include ensuring property owners’ due diligence, adopting a simplified and streamlined insurance claim management approach, good communication approach and providing clarity and consistency in policy underwritings and legislative provisions governing the dual insurance scheme. The findings highlight the significance of a streamlined approach to insurance claims evaluation and management in pre-disaster planning and post-disaster reconstruction.