Dr Michael Naylor's presentation from 12th May 2016 EQC Declaratory Settlement meeting. Massey Research into the Response of EQC & Insurers to Quake Claims Exert: In my non-lawyer opinion the EQC- Action group agreement is unusual. Most legal agreements are limited to the group involved. The way the EQC announcement was phrased – ‘this is what we have always done’ – opens it to everyone to ensure that ‘as - when new’ was applied to their claim. This is every EQC repair/ rebuild/ cash claim

1. School of Economics and Finance
College of Business
Introduction to
Investments
Massey Research into the
Response of EQC &
Insurers to Quake Claims
Dr Michael Naylor
Senior Lecturer in Finance &
Insurance

2. Introduction to
Investments
School of Economics and Finance
College of Business
Disclaimer
• I am not a lawyer or an engineer so I won’t
answer any technical questions.
• However I am one of the few experts with
a legal right to say what I think.
• I am NZ’s only insurance academic
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3. Introduction to
Investments
School of Economics and Finance
College of Business
The EQC Agreement
• In my non-lawyer opinion the EQC- Action
group agreement is unusual.
• Most legal agreements are limited to the
group involved.
• The way the EQC announcement was phrased
– ‘this is what we have always done’ – opens
it to everyone to ensure that ‘as - when new’
was applied to their claim.
• This is every EQC repair/ rebuild/ cash claim
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4. Introduction to
Investments
School of Economics and Finance
College of Business
EQC Agreement
• The style of agreement works politically, as
no-one has to accept they were wrong.
• However it fails in implication terms.
• This may be because EQC lawyers advised
them that they would lose any further cases.
• Every one needs to reassess their claim.
• The obvious EQC response will be to delay
and deny any review requests.
• So don’t expect EQC to roll over.
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5. Introduction to
Investments
School of Economics and Finance
College of Business
Note on Foundations
• Its clear that the nature of some areas of land
in Canterbury has changed. An example
would be earth which is a mixture of stones
and shingle. This could be old river beds.
• This was perfectly OK to build on with a
shallow ring foundation prior to the quake.
• However the quakes have shaken that
mixture up. It will take at least another 10
years for it to settle.
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6. Introduction to
Investments
School of Economics and Finance
College of Business
Foundations
• Thus a shallow ring foundation may no
longer be OK, as further settling will cause
the earth to sink in places, even on TC1 & 2.
• Thus: does the building code and an 'when
new' definition require a proper engineering
assessment of any land issues and possibly an
engineered foundation solution, even though
this was not the case pre-quake?
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7. Introduction to
Investments
School of Economics and Finance
College of Business
Foundations
• Now I'm not a geotech engineer or a building
code expert, so I won't presume an answer.
• But it is an issue which has been ignored.
• My guess would be – ‘of course all repairs/
rebuilds need a land /foundation assessment
by a qualified person.’
• However my casual impression is that 90% of
EQC repairs have not had any foundation
assessment. They’ve not even had roof
structure assessments. 7

8. Introduction to
Investments
School of Economics and Finance
College of Business
Foundations
• They’ve not even had roof structure
assessments.
• Land assessments should be a bare
minimum.
• For a number of homes, like those in clay,
there is no issue.
• But how to tell unless assessed? Esp as old
river beds maybe buried, and therefore not
obvious on the surface.
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9. Introduction to
Investments
School of Economics and Finance
College of Business
Massey Research
• A team at Massey University is researching
the responsiveness of the EQC and private
insurers to quake claims.
• This is very detailed and covers;
– How the communication was handled
– How the assessments were handled
– How rebuilds were handled
– How EQC/ insurers dealt with stressed/ traumatised
clients
– etc
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10. Introduction to
Investments
School of Economics and Finance
College of Business
Massey Research
• We are using multiple approaches:
– A tick box survey
– A detailed experiences questionnaire
– Focus group talks
– Interviews with industry/ experts
– Video recordings of claimants talking about their
insurance experiences
• We want EVERY chch resident to respond
and tell their story.
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11. Introduction to
Investments
School of Economics and Finance
College of Business
Massey Research
• We are all insurance experiences, whether
good or bad.
• We particularly want to know what insurers
did well, so that we can recommend this.
• We love to hear about your experiences.
• Our report will be aimed at both the people of
Christchurch and an international audience
of insurers.
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12. Introduction to
Investments
School of Economics and Finance
College of Business
Massey Research
• What you can do:
• Go to www.quakesurvey.co.nz
• Fill out the tick-box survey
• Fill out the experiences survey
• We are back next weekend (19th-23rd) to video
record peoples talking about their
experiences for the National Archives.
• This can be delay released until your claim is
settled.
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13. Introduction to
Investments
School of Economics and Finance
College of Business
Massey Research
• What you can do you want future generations
to know about Canterbury insurance quake
claims?
• Please take posters and flyers at the back and
get cafes’, takeaways, sports clubs, etc to put
them up.
• Please pass the survey link onto via your
mobile phones to everyone who know,
including your work colleagues.
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14. Introduction to
Investments
School of Economics and Finance
College of Business
Massey Research
• Massey University regards recording and
preserving the experiences of Canterbury
claimants as a of national and international
importance.
• We are the only independent research report
which will ever occur. We are skilled and
passionate. This is your chance to have your
say.
• The survey will remain open indefinitely.
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15. Introduction to
Investments
School of Economics and Finance
College of Business
Massey Research
• I still have some time tomorrow afternoon to
video record people’s experiences.
• If you are interested please see me at the end.
• We will open a dropbox to receive self-
recorded videos. We will post instructions
soon.
• The Survey Prizes, 3x $200 Prezzie cards, will
be awarded soon. Be in fast!
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