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Daily Insurance Industry News
Sunday 21st of January 2018
September 29, 2011

Ecclesiastical stops New Zealand earthquake cover

by Richard Kilner

Story link: Ecclesiastical stops New Zealand earthquake cover

Ecclesiastical Group has announced that, following a string in earthquakes in the Christchurch area, it is to stop writing earthquake cover in New Zealand.

Group Chief Executive Michael Tripp explained that the earthquakes had caused the firm’s largest ever series of losses, adding that although the firm was well-protected by reinsurance schemes it nevertheless saw gross claims exceeding £330m.

Tripp went on to say that the firm had therefore elected to cease writing any new business via its Ansvar subsidiary in New Zealand and will offer new business and renewals through its Australian subsidiary (not including earthquake cover).

He stated that the decision had been made to safeguard the firm’s long-term stability, and said that its operations in the UK, Ireland and Canada were unaffected, with customers in Australia offered earthquake cover where it proves affordable.

Ecclesiastical is also exploring the possibility of providing earthquake cover in New Zealand as a stand-alone product, or as part of broader cover through an underwriting agency.

When reporting biannual results for H1 2011, the firm reported that it incurred £419m of general business gross claims cost due to catastrophes, including earthquakes in New Zealand and Australia.

 

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