2011-09-29
By staff reporter
Following the devastating series of earthquakes in Christchurch the Ecclesiastical Group is to cease writing earthquake cover in New Zealand.
“The New Zealand earthquakes have produced the group’s biggest ever series of losses. Although we are well protected by our reinsurance programmes, we have nevertheless experienced gross claims, across the three main events, of over £330m," says group chief executive Michael Tripp.
“We have therefore taken the decision to cease writing any new business from our Ansvar subsidiary in New Zealand, and plan to offer new business and renewals through our Australian operation (which also trades under the Ansvar brand). Policies underwritten from Australia will not include earthquake cover.
The move was made to protect the long-term stability of the Ecclesiastical Group, with operations in the UK, Ireland and Canada unaffected by the announcement.
"This is an incredibly difficult time for everyone in New Zealand. We remain committed to helping our customers recover, particularly those who have been directly affected by the earthquakes. We are also exploring whether it might be possible to provide future protection, either by offering earthquake cover as a standalone product or potentially as part of a broader cover, through an underwriting agency. We will communicate further with our customers and broker partners in New Zealand about this as soon as we are able to.
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