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Former governor-general to lead EQC inquiry

The New Zealand Government has named former governor-general Silvia Cartwright as head of a public inquiry into the Earthquake Commission, and has released her terms of reference.

The former High Court judge led an inquiry into cervical cancer research and treatment at the Auckland National Women’s Hospital in the 1980s, and has served on the Cambodia war crimes tribunal.

The EQC inquiry will have the powers of a royal commission and will provide an interim report to the Government by the end of June.

“The aim of the inquiry is to learn from the experience of the Canterbury earthquakes and ensure the Earthquake Commission is fit for purpose in future events,” Minister Responsible for the EQC Megan Woods said.

“The insurance system as whole, including the EQC’s role in that system, needs to be ready to deliver services to those affected by the next big event, whenever or wherever that happens.”

Funding for the inquiry and a separate tribunal to resolve outstanding Canterbury quake claims was provided in the May budget.

The inquiry’s mandate includes examining the pilot process introduced after the Kaikoura quake, when insurers acted as EQC agents, getting involved earlier in the process and reducing duplication.

It will recommend lessons to be learned from Canterbury, including any changes or additions to operational practices, but won’t review unresolved claims or become involved in those already settled.

The Insurance Council of New Zealand, which backs the Kaikoura approach, welcomes inclusion of the model in the inquiry focus.

“Insurers act as agents for their reinsurers in all their claims worldwide,” CEO Tim Grafton said. “They are accustomed to reporting progress and being accountable to reinsurers, and it’s just a matter of reflecting this approach with the EQC.”

From next July the EQC will no longer oversee contents claims, with the responsibility passing to policyholders’ private insurers. “If the insurer is going to be on the spot in any event, why would any model also require the EQC to be present too?” Mr Grafton said.