Kaikōura earthquake claims settlement

Project findings

Through the analysis of claims and consent data, a claimant survey, and stakeholder interviews, we evaluated the impacts of cash settlement following the 2016 Kaikōura/Hurunui earthquake on housing quality and claimant wellbeing. The analysis highlighted lessons for the residential repair process following future events.

Generally, the research identified that claimants from this event chose to undertake repairs and were satisfied with the quality of repairs. There is evidence that some structural repair work may have been completed without the necessary building consents or council exemptions. Some homeowners were frustrated with the damage assessment process, particularly where repeated assessments were undertaken. This eroded trust in the insurance settlement process and contributed to protracted claims settlement times.

In terms of future events, the research shows that cash settlement is an effective tool and is preferred by the majority of claimants. However, the nature of the event and communities impacted will likely influence whether cash settlement is a good model and/or whether alternative options need to be provided to claimants in the future.

Regardless of the insurance claim settlement model, the process needs to provide good access to information, autonomy and choice, quality damage assessment processes and repair quality assurance processes.