{{short description|New Zealand government agency}} {{redirect|EQC|other uses}} {{Use dmy dates|date=November 2024}} {{Use New Zealand English|date=March 2024}} {{Infobox government agency | agency_name = Natural Hazards Commission | native_name = {{Native name|mi|Toka Tū Ake}} | nativename_r = | logo = Natural Hazards Commission Toka Tū Ake logo.svg | logo_caption = | formed = {{Start date|1945}} | headquarters = Level 11, Majestic Centre, 100 Willis Street, Wellington | coordinates = {{coord|41|17|18.13|S|174|46|28.09|E|type:landmark_region:NZ|display=inline}} | minister1_name = David Seymour<ref>{{cite web|title=Ministerial List|url=https://www.eqc.govt.nz/about-eqc/our-people/|publisher=EQC Toka Tū Ake (New Zealand)|access-date=29 April 2024}}</ref> | chief1_name = Chris Black | chief1_position = Chair | chief2_name = Tina Mitchell<ref>{{cite web|url=https://www.eqc.govt.nz/about-eqc/our-people/executive-leadership-team/|title=Executive leadership team :: EQC Earthquake Commission}}</ref> | chief2_position = Chief executive | website = {{URL|eqc.govt.nz/}} | type = Crown entity | seal = | jurisdiction = | budget = | chief3_name = | chief3_position = | chief4_name = | chief4_position = | chief5_name = | chief5_position = | chief6_name = | chief6_position = | chief7_name = | chief7_position = | chief8_name = | chief8_position = | chief9_name = | chief9_position = | parent_department = }}
The '''Natural Hazards Commission – Toka Tū Ake''' is a New Zealand Crown entity that invests in natural disaster research and education and provides natural disaster insurance to residential property owners.
It is a continuation of the Earthquake and War Damage Commission, set up in 1945 and known as the '''Earthquake Commission''' ('''EQC''') ({{langx|mi|Kōmihana Rūwhenua}}) from 1993 until 2024.
== History == thumb|Abbotsford landslip, 1979
=== Earthquake and War Damage Act 1945 === Following several destructive earthquakes between 1929 and 1942,<ref name="EQC Board 2008 Briefing for the Minister">{{cite web |author1=Board of the Earthquake Commission |date=4 November 2008 |title=Briefing for the Minister in Charge of the Earthquake Commission |url=https://www.parliament.nz/resource/0000147529 |access-date=26 February 2018 |website=parliament.nz/ |page=2}}</ref> the government decided to set up a statutory scheme of disaster insurance, resulting in the Earthquake and War Damage Act 1945 and the creation of the Earthquake and War Damage Commission. The act provided for the establishment of an Earthquake and War Damage Fund and the scheme was financed by a compulsory levy imposed on all fire insurance policies. Responsibility for collecting the levies was placed on the insurance companies. The act was administered by the State Insurance Office, which provided staff and accounting services; Treasury determined the fund's investment policy. The levy was set at 5 cents per $100 of value and cover was limited to indemnity value. Over time, cover was extended to other natural disasters and to cover damage to land as well as to buildings.<ref name="Tomkin and Taylor Landslip Review 1992">{{cite web |author1=Tomkin & Taylor Ltd |date=March 1992 |title=Landslip Claim Review |url=https://www.eqc.govt.nz/sites/public_files/4332-Landslip-claim-review.pdf |access-date=26 February 2018 |website=Earthquake & War Damage Commission |publisher=EQC |page=4 }}{{Dead link|date=August 2025 |bot=InternetArchiveBot |fix-attempted=yes }}</ref><ref>{{cite web |last1=Steven |first1=Leicester |year=1992 |title=The Earthquake & War Damage Commission – a look forward (and a look back) |url=http://www.nzsee.org.nz/db/Bulletin/Archive/25(1)0052.pdf |access-date=25 February 2018 |website=New Zealand Society for Earthquake Engineering Inc. Advancing the science and practice of earthquake engineering |page=52 |ref=Presented at IPENZ conference}}</ref> The need to cover land damage was identified in a report that followed the 1979 Abbotsford landslip in Dunedin when 69 homes were lost.
=== Earthquake Commission Act 1993 ===
The '''Earthquake Commission Act 1993''' renamed the commission and introduced new changes to the system.<ref name="Priest">{{cite web |last1=Priest |first1=Sally |date=July 2014 |title=Review of international flood insurance and recovery mechanisms: Implications for New Zealand |url=http://resilience.goodhomes.co.nz/wp-content/uploads/2017/06/Review-of-international-insurance-provision-and-implications-for-Older-people-in-New-Zealand_Fullreport.pdf |access-date=27 February 2018 |publisher=Middlesex University |page=24 |quote=Funded by the Ministry of Business, Innovation and Employment |location=London}}</ref> The insurance was known as EQCover. It was now limited to residential buildings; cover for buildings was confirmed as being for replacement (new), not indemnity, value; and war damage cover was removed. These changes reduced the government's exposure to a very large potential liability and brought the EQC system more in line with current insurance industry practices.<ref name="Priest" /> In 2001 the commission founded GeoNet along with GNS Science and Land Information New Zealand.<ref name=":1">{{Cite web |title=Living with earthquakes |url=https://teara.govt.nz/mi/earthquakes/page-3 |access-date=19 October 2024 |website=Te Ara: The Encyclopedia of New Zealand}}</ref><ref>{{Cite web |title=GeoNet » Natural Hazards Commission Toka Tū Ake |url=https://www.naturalhazards.govt.nz/resilience-and-research/data-and-modelling/geonet/ |access-date=19 October 2024 |website=naturalhazards.govt.nz |language=en-NZ}}</ref>thumb|Gisborne Earthquake, 2007
In its first 65 years, the commission was called on to settle only relatively minor claims and the disaster fund continued to grow, reaching $6.1 billion by August 2010.<ref>{{cite web |date=31 October 2017 |title=The Natural Disaster Fund |url=https://www.eqc.govt.nz/about-eqc/our-role/ndf |access-date=28 February 2018 |website=EQC |publisher=NZ Government}}</ref> The most notable natural disaster during this period was the 1979 Abbotsford landslip, near Dunedin, that caused the destruction of 69 houses.<ref>{{cite web |title=Abbotsford landslide |url=https://my.christchurchcitylibraries.com/abbotsford-landslide/ |access-date=28 February 2018 |publisher=Christchurch City Librariws}}</ref><ref>{{cite web |title=Abbotsford Landslip |url=http://www.nzterritory.com/disasters/abbotsford.html |access-date=28 February 2018}}</ref> A subsequent commission of enquiry led, in 1984, to land damage being covered. Another noteworthy event was the 2007 Gisborne earthquake after which the EQC received over 3,100 claims and paid out over $16 million.<ref>{{cite web |date=18 February 2009 |title=EQC starts to assess Gisborne quake claims |url=http://www.stuff.co.nz/national/215046/EQC-starts-to-assess-Gisborne-quake-claims |access-date=28 February 2018 |publisher=Stuff |location=New Zealand}}</ref> A more significant series of payouts was required after the 2010–2011 Canterbury and Christchurch earthquakes (see {{Section link|2=Canterbury earthquake sequence|nopage=y}}).
===Natural Hazards Insurance Act 2023===
A bill proposing to update the legislation governing the Earthquake Commission was introduced into Parliament in March 2022. The overarching objectives of its changes were "to enable better community recovery from natural hazards, to clarify the role of the Commission and the cover provided by the Bill, and to enhance the durability and flexibility of the legislation."<ref> {{cite web |title=Natural Hazards Insurance Bill |url=https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_121175/natural-hazards-insurance-bill |access-date=31 July 2022 |website=Bills and Laws |publisher=New Zealand Parliament}} </ref> The bill passed and came into effect on 1 July 2024, changing the commission's name to the Natural Hazards Commission.<ref>{{cite news |date=1 July 2024 |title=Not just earthquakes: EQC gets a new name – the Natural Hazards Commission |url=https://www.rnz.co.nz/news/national/520969/not-just-earthquakes-eqc-gets-a-new-name-the-natural-hazards-commission |url-status=live |archive-url=https://web.archive.org/web/20240701082135/https://www.rnz.co.nz/news/national/520969/not-just-earthquakes-eqc-gets-a-new-name-the-natural-hazards-commission |archive-date=1 July 2024 |access-date=2 July 2024 |work=RNZ}}</ref>
== Constitution and functions == The Natural Hazards Insurance Act 2023 is the primary legislation which sets the constitution and functions of the commission.<ref name="u751">{{cite web |date=24 January 2024 |title=Natural Hazards Insurance Act 2023 |url=https://legislation.govt.nz/act/public/2023/0001/latest/whole.html |access-date=21 January 2025 |website=New Zealand Legislation |ref={{sfnref| New Zealand Legislation |2024}}}}</ref> Under Part 5 of the Act, the commission is a Crown entity under the Crown Entities Act 2004 with a board of between 5 and 9 members. Its primary objective is "to reduce the impact of natural hazards on people, property, and the community" and its more specific objectives are:
* to administer natural hazard cover, in particular by managing and settling claims, in a fair and timely manner in accordance with the Act. * to contribute to the management of the financial risk to the Crown of providing natural hazard cover by managing the Fund, collecting the levy, and arranging reinsurance or other risk transfer products. * to contribute to improved awareness and understanding of matters relating to natural hazards, improved natural hazard risk management, and improved readiness for, resilience to, and recovery from, natural hazards. * to facilitate the arrangement by the Crown of reinsurance or other risk transfer products in respect of Crown risks beyond those covered in the Act.
Its statutory functions include:
* administering natural hazard cover, in particular by managing and settling claims. * managing the Natural Hazard Fund, including by investing the Fund. * collecting the Natural Hazard Fund levy, which is a compulsory levy added to all home insurance policies and transferred by private insurers to the Natural Hazard Fund for use when needed.<ref>{{cite journal |author1=John McAneney |author2=Delphine McAneney |author3=Rade Musulin |author4=George Walker |author5=Ryan Crompton |date=March 2016 |title=Government-sponsored natural disaster insurance pools: A view from down-under |journal=International Journal of Disaster Risk Reduction |volume=15 |pages=1–9 |bibcode=2016IJDRR..15....1M |doi=10.1016/j.ijdrr.2015.11.004 |doi-access=free}}</ref> * arranging reinsurance or other risk transfer products in respect of all or part of natural hazard cover. * facilitating and sharing research and education on matters related to natural hazard impacts, cover, resilience and planning. * supporting the Minister in performing the Minister’s functions. * monitoring, investigations and enforcement of possible offences against the Act.
As of June 2021, the commission had 310 permanent and fixed term staff.<ref>{{Cite web |title=EQC Annual Report 2020-2021 :: Toka Tū Ake EQC |url=https://www.eqc.govt.nz/our-publications/eqc-annual-report-2020-2021/ |access-date=8 August 2022 |website=eqc.govt.nz}}</ref>
==Claims settlement==
This is determined by the Natural Hazards Insurance Act 2023 and by legal precedents created over time. Settlement money comes first from the Natural Disaster Fund, then from any re-insurers, and finally from the government, under a Crown guarantee. EQCover insures the policyholders building, personal property, and land.
Each claim is subject to an excess payable by the claimant and a capped maximum sum payable by the commission, known as 'the cap'. As of 2018, the excess and cap for a building claim were 1% and $100,000; for personal property they were 1% and $20,000; and for land they were 10% and a variable cap sum determined by a formula that includes current market land prices.<ref name="EQC Act 1993">{{cite web |title=Earthquake Commission Act 1993 |url=http://www.legislation.govt.nz/act/public/1993/0084/latest/DLM305968.html |access-date=25 February 2018 |website=New Zealand Legislation |publisher=NZ Government}}</ref> Goods and services tax is added to the cap payable. These cap amounts are subject to change but in 2018 they remained the same as they were in 1993. In 1993, $100,000 was enough to cover the cost of rebuilding most houses: in 2018, building costs had increased more than fourfold. In most cases, private home insurance policies cover the cost of natural disaster damage above the amount paid by the commission.
==Canterbury earthquake sequence== On 4 September 2010, a powerful earthquake struck near Darfield in Canterbury. It began a series of earthquakes and aftershocks lasting till around 2016. The most destructive of these was the 22 February 2011 earthquake, centred close to Christchurch, in which 185 people died. The then Earthquake Commission (EQC) received over 470,000 claims, more than 15,000 families lost their homes, and repair costs were estimated at over $40 billion.<ref>{{cite web|title=Canterbury Earthquake Sequence|url=https://www.tonkintaylor.co.nz/what-we-do/natural-hazards/canterbury-earthquake-sequence/|publisher=Tomkin+Taylor|access-date=1 March 2018}}</ref> EQC acknowledged several times during this period that the scale of the disaster was unprecedented.<ref>{{cite web|title=Last day to lodge claims with EQC|url=https://www.eqc.govt.nz/news/last-day-lodge|website=EQC|publisher=NZ Government|access-date=1 March 2018|date=3 December 2010}}{{Dead link|date=August 2025 |bot=InternetArchiveBot |fix-attempted=yes }}</ref><ref>{{cite web|last1=Michael Wright & Joelle Dally|title='Outstanding' EQC boss Ian Simpson quits|url=https://www.stuff.co.nz/national/84737331/outstanding-eqc-boss-ian-simpson-quits|website=Stuff |access-date=1 March 2018|date=20 September 2016}}</ref> Speculation at the time about the scale of the damage proved to be significantly incorrect.<ref>{{cite web|last1=Bennett|first1=Adam|title=Christchurch quake: EQC has enough money and 'reinsurance' to cover cost – English|url=http://www.nzherald.co.nz/christchurch-earthquake/news/article.cfm?c_id=1502981&objectid=10708149|website=The New Zealand Herald |publisher=NZME|access-date=1 March 2018|date=23 February 2011}}</ref>
thumb|Earthquake damaged villa in Christchurch, March 2011 thumb|left|The result of land damage caused by ground liquefaction<ref>{{cite web|last1=Richardson|first1=Shannon|title=The Canterbury Earthquakes: The land damage and planning for the recovery process|url=https://www.planning.org.nz/Folder?Action=View%20File&Folder_id=218&File=RICHARDSON_2011.pdf|website=Tonkin & Taylor Ltd Environmental and Engineering Consultants|publisher=Tomkin + Taylor Ltd|access-date=2 March 2018}}</ref>In August 2016, the Insurance Council of New Zealand (ICNZ) stated that they were still being handed earthquake claims from EQC from the Christchurch earthquakes, and were thus not able to give a final cost to the insurance industry. In July 2016, EQC had 250 complex cases from Christchurch unresolved, 364 first-time repairs yet to be finished, and 6,144-second-time repairs being handled.<ref>{{cite news|last1=Truebridge|first1=Nick|title=Insurers unable to say when liability from Canterbury earthquakes will be known|url=http://www.stuff.co.nz/business/82571298/insurers-unable-to-say-when-liability-from-canterbury-earthquakes-will-be-known|access-date=20 December 2016|work=The Press|date=1 August 2016}}</ref> If the damage stays "under cap" (i.e. it is up to $100,000 plus GST), EQC assessors dealt with the claim. When the claim goes "over cap", the settlement process is handed to the commercial insurer. This situation led to much double-handling and many inefficiencies, and has been widely criticised. In 2015, the Insurance Council of New Zealand submitted to the government that the process be changed and all assessments be handled by commercial insurers instead. Following the 2016 Kaikōura earthquake, the government agreed to this proposal in December 2016. It was also stated that "under cap" claims in Christchurch that have still to be settled will remain with EQC.<ref>{{cite news|last1=McDonald|first1=Liz|title=EQC hands quake claims to private insurers <!-- title of the print version is shown; online title is "Insurers to handle quake claims" -->|url=http://www.stuff.co.nz/the-press/business/the-rebuild/87523336/insurers-to-handle-quake-claims|access-date=20 December 2016|work=The Press|date=13 December 2016|page=A1}}</ref>
There is a $1.5 billion NZD excess for each earthquake event. If the required EQC payout exceeds the total of the excess and reinsurance ($4 billion NZD) the remainder of the payout is met by the EQC up to the limit of the Natural Disaster Fund.<ref name="bennet1">{{cite news|url=http://www.nzherald.co.nz/christchurch-earthquake/news/article.cfm?c_id=1502981&objectid=10708149|title=Christchurch quake: EQC has enough money and 'reinsurance' to cover cost – English|first=Adam|last=Bennet|newspaper=The New Zealand Herald|date=23 February 2011|access-date=23 February 2011}}</ref> If the payout exceeds those assets, a Crown Guarantee requires that the Government pay the remainder.<ref>{{cite web|url=http://eqc.govt.nz/downloads/pdfs/min-briefing-08.pdf|title=Briefing for the Minister in Charge of the Earthquake Commission|access-date=23 February 2011|date=4 November 2008|pages=11–12|archive-url=https://web.archive.org/web/20101225185409/http://eqc.govt.nz/downloads/pdfs/min-briefing-08.pdf#!Ql9glC4a!KRTF0CcPGDva0TzLnfDLIFja0hxlYtnspqTX9v_s_HM|archive-date=25 December 2010|url-status=dead}}</ref>
===EQC's handling of the earthquake claims=== EQC's preferred method of settling claims till this point had been to make payment rather than to repair the damage. However, soon after the 4 September 2010 earthquake, EQC's then chairman, Michael Wintringham, confirmed in the commission's 2010–11 Annual Report that it had been asked by the government to settle claims by repairing buildings, (if the cost was not above cap, in which case EQC would cash settle and pass the claim to the owner's private insurance company).
This preference to repair was both to prevent the predicted upward spiral in building costs if repair money flooded the market, and to reduce the inevitable stress on home owners having to manage their own repairs.<ref>{{cite web|title=Annual Report 2011|url=https://www.eqc.govt.nz/sites/public_files/eqc-annual-report-2010-11.pdf|website=EQC|publisher=NZ Government|access-date=2 March 2018|page=5}}{{Dead link|date=August 2025 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> The then Chief Executive, Ian Simpson, prefaced these comments by stating: "It is important that we are accurate with our claims settlement process. Not just for our customers in a very difficult and uncertain time but also for the continued confidence of the global insurance market and the protection of the EQC funds for all New Zealanders".<ref>{{cite web|title=eqc-annual-report-2010-11|url=https://www.eqc.govt.nz/sites/public_files/eqc-annual-report-2010-11.pdf|website=EQC|publisher=NZ Government|access-date=2 March 2018|page=2}}{{Dead link|date=August 2025 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> The protection of the Disaster Fund is a core responsibility of the commission. EQC's later response was to engage Fletcher Building, the country's largest construction company, as its agent to undertake the necessary repair work. The result was ''The Canterbury Home Repair Programme''. In doing this, EQC indemnified Fletcher Building against any future liability.<ref>{{cite web|last1=Fletcher|first1=EQC|title=Customer Guide to the Canterbury Home Repair Programme|url=https://www.eqc.govt.nz/sites/public_files/CHRP-Homeowner-Guide-112014-Nov14.pdf|website=EQC|publisher=NZ Government|access-date=2 March 2018|date=12 November 2014|archive-date=30 January 2018|archive-url=https://web.archive.org/web/20180130111736/https://www.eqc.govt.nz/sites/public_files/CHRP-Homeowner-Guide-112014-Nov14.pdf|url-status=dead}}</ref><ref>{{cite web|title=Former Fletcher boss says running quake rebuild without indemnity would have been 'absolutely stupid'|url=https://www.stuff.co.nz/the-press/business/the-rebuild/102036981/former-fletcher-boss-says-running-quake-rebuild-without-indemnity-would-have-been-absolutely-stupid|website=The Press|publisher=Stuff |access-date=6 March 2018|date=4 March 2018}}</ref> In June 2013, the Auditor-General reported on EQC's performance in managing the ''Canterbury Home Repair Programme''. She found it had been "mixed".<ref>{{cite web|title=Auditor-General's overview – Earthquake Commission: Managing the Canterbury Home Repair Programme.|url=https://oag.govt.nz/2013/eqc|website=Controller and Auditor-General|publisher=The Crown|access-date=6 March 2018|date=31 October 2013}}</ref>
For building claims, EQC chose first to assess properties to determine the extent and cost of repairing any damage. This was usually carried out by a two-person team comprising an assessor and an estimator.<ref>{{cite web|title=Home assessments – The home assessment process|url=https://www.eqc.govt.nz/canterbury-earthquakes/claims-assessment/more-on-assessments/the-assessment-process|website=EQC|publisher=NZ Government|access-date=2 March 2018|date=7 February 2013}}</ref> Assessors had no specific qualification other than to be seen as persons of good character with the ability to spot any unjustified or fraudulent claims. Retired police officers were often used.<ref>{{cite web|title=Shane Collins|url=https://careers.eqc.govt.nz/profile?siid=TUWe7|website=EQC|publisher=NZ Government|access-date=2 March 2018}}</ref><ref>{{cite web|last1=Truebridge|first1=Nick|title=No minimum qualification required for EQC assessors, despite criticism of work|url=https://www.stuff.co.nz/the-press/business/the-rebuild/82800936/No-minimum-qualification-required-for-EQC-assessors-despite-criticism-of-work|website=The Pressstuff|publisher=Stuff |access-date=2 March 2018|date=8 August 2016}}</ref> Estimators had building industry experience.
During this period, EQC pointed out the magnitude of the task it faced, its relative success, and the external factors that hindered it from providing an even better service. In 2013, commenting on a report it had commissioned, EQC said: "(the) earthquakes involved the kind of damage you would expect in wartime". It continued: "much has been achieved by EQC throughout the process of responding to Canterbury events as assessments have been completed, contents claims settled, emergency work undertaken and managed repairs underway in Christchurch".<ref>{{cite web|title=Lessons Learnt. A report on EQC's response to the Canterbury earthquakes.|url=https://www.eqc.govt.nz/news/lessons-learnt-a-report-on-eqc%E2%80%99s-response-to-the-canterbury-earthquakes|website=EQC|publisher=NZ Government|access-date=4 March 2018|date=7 October 2013|archive-date=4 March 2018|archive-url=https://web.archive.org/web/20180304172539/https://www.eqc.govt.nz/news/lessons-learnt-a-report-on-eqc%E2%80%99s-response-to-the-canterbury-earthquakes|url-status=dead}}</ref>
Aside from settling claims, the commission had to deal with many litigation issues.
In 2011, the High Court decided to establish an Earthquake List to handle the expected large number of earthquake related cases. By February 2018, 1,048 claims had been filed, many of them involving EQC.<ref>{{cite web|title=Earthquake list and litigation list reports – Christchurch|url=https://www.courtsofnz.govt.nz/the-courts/high-court/high-court-lists/earthquake-list-christchurch|website=Courts of New Zealand|publisher=The Crown|access-date=4 March 2018|date=February 2018}}</ref>
In March 2013, EQC was criticised after an employee accidentally sent a file containing details on more than 80,000 claims to a contractor.<ref>{{cite news|url=http://www.3news.co.nz/EQC-email-recipient-denies-leaking-details/tabid/1607/articleID/291787/Default.aspx|work=3 News NZ|title=EQC email recipient denies leaking details|date=26 March 2013|archive-date=19 April 2013|access-date=26 March 2013|archive-url=https://web.archive.org/web/20130419215917/http://www.3news.co.nz/EQC-email-recipient-denies-leaking-details/tabid/1607/articleID/291787/Default.aspx|url-status=dead}}</ref> EQC obtained a High Court injunction preventing publication, which a disgruntled ex-employee and blogger breached by publishing an online link to the list. The blogger was found to be in contempt and fined.<ref>{{cite news|url=http://www.3news.co.nz/Blogger-releases-suppressed-EQC-material/tabid/423/articleID/293971/Default.aspx|work=3 News NZ|title=Blogger releases leaked EQC data|date=12 April 2013|archive-date=19 April 2013|access-date=12 April 2013|archive-url=https://web.archive.org/web/20130419213930/http://www.3news.co.nz/Blogger-releases-suppressed-EQC-material/tabid/423/articleID/293971/Default.aspx|url-status=dead}}</ref>
In 2015, an earlier finding of "incompetence" against an engineer working for EQC was dismissed by the Chartered Professional Engineers Council (CPEC).<ref>{{cite web|title=No appeal after Graeme Robinson incompetence claims quashed|url=https://www.stuff.co.nz/national/70984987/no-appeal-after-graeme-robinson-incompetence-claims-quashed|website=stuff National|publisher=Stuff |access-date=6 March 2018|date=10 August 2015}}</ref>
In 2015, a group of around 100 home owners launched proceedings against the EQC for not settling claims according to the standard required by the EQC Act. In April 2016, both parties agreed in a public statement that EQC's standard did comply with the act. The group then discontinued its claim. Both sides claimed success. The High Court awarded costs against the group.<ref>{{cite web|title=EQC and Action Group agree settlement principles|url=https://www.eqc.govt.nz/news/eqc-and-action-group-agree-settlement-principles|website=EQC|publisher=NZ Government|access-date=4 March 2018|date=29 April 2016|archive-date=4 March 2018|archive-url=https://web.archive.org/web/20180304172610/https://www.eqc.govt.nz/news/eqc-and-action-group-agree-settlement-principles|url-status=dead}}</ref><ref>{{cite web|last1=McCrone|first1=John|title=EQC called to account over 'when new' repairs|url=https://www.stuff.co.nz/the-press/news/79939636/EQC-called-to-account-over-when-new-repairs|website=The Press|publisher=Stuff |access-date=4 March 2018|date=14 May 2016}}</ref><ref>{{cite web|last1=McMullen|first1=Kirsten|title=EQC Action Group Settlement – landslide victory or confirming the status quo?|url=https://cavell.co.nz/articles/2016/eqc-action-group-settlement-landslide-victory-or-c|website=Cavell Leitch|access-date=4 March 2018|year=2016}}{{Dead link|date=August 2025 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
===Results of EQC's claim handling=== [[File:Maarten Wevers KNZM (cropped).jpg|150px|thumb|Maarten Wevers]] [[File:Annette King at Onslow Kindergarten.jpg|150px|thumb|Annette King]] Throughout the process, EQC received unwavering public support from the minister responsible, Gerry Brownlee.<ref>{{cite web|last1=Wright|first1=Michael|title='Outstanding' EQC boss Ian Simpson quits|url=https://www.stuff.co.nz/national/84737331/eqc-boss-ian-simpson-quits|publisher=Stuff |location=New Zealand|access-date=2 March 2018|date=28 September 2016}}</ref> This support was contrasted by complaints of EQC mismanagement.<ref>{{cite web|last1=STYLIANOU|first1=GEORGINA|title=Hundreds protest outstanding EQC and insurance claims in Cathedral Square|url=https://www.stuff.co.nz/the-press/business/the-rebuild/77107446/hundreds-protest-outstanding-eqc-and-insurance-claims-in-cathedral-square|website=The Press|publisher=Stuff |access-date=2 March 2018|date=21 February 2016}}</ref><ref>{{cite web|last1=Wright|first1=Michael|title=EQC insulation turnaround 'incompetence'|url=http://www.stuff.co.nz/the-press/business/the-rebuild/8391920/EQC-insulation-turnaround-incompetence|website=The Press|publisher=Stuff |access-date=2 March 2018|date=7 March 2013}}</ref>
In October 2017, a new government was sworn in and the minister responsible changed. In February 2018, Megan Woods, the new minister, expressed her frustration with the EQC board and the pace of claims settlement. After seven years there were more than 2,600 claims still unresolved. She said she would appoint an independent ministerial advisor to work with the board and management who would report directly to her. The minister said: "I've made it clear I am not satisfied with where EQC is in respect of the Canterbury earthquake work seven years on from the 22 February event".
In response Maarten Wevers, the chairman and a lifelong public servant, resigned. He stated: "It is clear that the minister has no confidence in the board and staff of the commission. As chair, I take responsibility for that, and have stepped aside so that the minister can appoint someone whom she assesses will be able to do a better job."<ref>{{cite web|title=EQC chairman Sir Maarten Wevers resigns as Govt steps in to speed up settlements|url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12000567|website=The New Zealand Herald |publisher=NZME|access-date=2 March 2018|date=23 February 2018}}</ref> A few days later, the minister announced the appointment of Annette King as an interim chairperson, and said: "I'm keen to see a broadening of skills to include people who have been at the coalface and understand the reality faced by those people at the coalface".<ref>{{cite web|last1=McDonald|first1=Liz|title=Minister Megan Woods not finished yet with Earthquake Commission shake-up|url=https://www.stuff.co.nz/the-press/business/the-rebuild/101891950/minister-megan-woods-not-finished-yet-with-earthquake-commission-shakeup|website=The Press|publisher=Stuff |access-date=2 March 2018|date=1 March 2018}}</ref>
An editorial in the ''Otago Daily Times'', on the same day, read:<ref>{{cite web|title=EQC must do better in future|url=https://www.odt.co.nz/opinion/editorial/eqc-must-do-better-future|website=Otago Daily Times |publisher=Allied Press Limited|access-date=2 March 2018|date=1 March 2018}}</ref>
<blockquote>It beggars belief that more than seven years on from the most damaging event – Christchurch's deadly 22 February magnitude-6.3 quake – there are still residents waiting for their claims to be completed. It is a disgraceful state of affairs, particularly when EQC was established to provide a rapid, comprehensive recovery from disaster. These quakes were its first really big test – and it failed. There are still more than 2600 claims outstanding out of more than 470,000".</blockquote>
===Public inquiry=== In November 2018, then Minister Megan Woods announced an independent public inquiry into EQC's handling of the Canterbury earthquake claims chaired by Silvia Cartwright.<ref name="McDonald">{{cite news|last1=McDonald|first1=Liz|title=EQC inquiry head Dame Silvia Cartwright says inquiry not about reputations|url=https://www.stuff.co.nz/national/108549630/dame-silvia-cartwright-to-head-eqc-inquiry|access-date=31 October 2023|work=Stuff |date=13 November 2018|language=en}}</ref> Cartwright's report, released in April 2020, found that EQC was poorly prepared for the Canterbury earthquakes. She made a number of recommendations about clarifying EQC's role and improving its processes for claims handling and communicating with claimants.<ref name="Todd">{{cite news|last1=Todd|first1=Katie|title=EQC poorly prepared for Canterbury earthquakes – inquiry|url=https://www.rnz.co.nz/news/national/413860/eqc-poorly-prepared-for-canterbury-earthquakes-inquiry|access-date=31 October 2023|work=Radio New Zealand |date=9 April 2020|language=en-nz}}</ref><ref>{{cite news|last1=Hayward|first1=Michael|title=Inquiry finds EQC unprepared for Canterbury quake claims, says changes needed|url=https://www.stuff.co.nz/business/120918869/inquiry-finds-eqc-wildly-unprepared-for-canterbury-quake-claims-says-changes-needed|access-date=31 October 2023|work=Stuff |date=9 April 2020|language=en}}</ref> Cartwright said:<ref name="Todd"/>
{{blockquote|I fully accept that staff, managers and the board of EQC faced an overwhelming task from September 2010, made significantly worse by the ongoing major earthquakes that ensued, an absence of clear prior direction from government, added responsibilities and inadequate internal systems. In the circumstances, EQC's commitment and aspects of its response are commendable. It is necessary, however, to emphasise that its advance planning had many inadequacies, as did the undertaking of its functions after the major events began. The affected public has borne the burden of this.}}
In addition Cartwright noted the significant impact on the EQC reputation given their appalling mismanagement of the Canterbury earthquakes.<ref>{{cite web|url=https://www.dpmc.govt.nz/sites/default/files/2021-01/report-of-the-public-inquiry-into-the-earthquake-commission.pdf|title=Report of the Public Inquiry into the Earthquake Commission|first=Silvia|last=Cartright|date=March 2020|page=12}}</ref>
{{blockquote|Unquestionably, there has been serious damage to EQC’s reputation; some deserved but much because it was simply unprepared for the role assigned to it. Prior to 2010, EQC was a trusted Crown entity, left to its own devices by the Government and not given much support for its attempts to secure and build its funds or to plan for the future. It was and continues to be successful in securing reinsurance in spite of New Zealand’s seismic risks and the recent catastrophic events, in part because of its commitment to research in understanding future hazards. EQC is derided by many, predominantly in Canterbury. A similar reaction to private insurers is also apparent, although more muted. But a body such as EQC—seen as the face of government—that had always been helpful and supportive prior to the Canterbury earthquakes was seen to be uncaring, miserly and inefficient. This reputation gathered pace and EQC is now frequently mentioned with distaste and even expletives.}}
==List of ministers== The following ministers have held responsibility for the commission.<ref>{{cite book|last=Wilson|first=James Oakley|title=New Zealand Parliamentary Record, 1840–1984|edition=4th|orig-year=First published in 1913|year=1985|publisher=V.R. Ward, Govt. Printer|location=Wellington|oclc=154283103|page=119}}</ref> From 1993 until 2011, there were no separate ministerial appointments; under the Earthquake Commission Act 1993, the Minister of Finance was the responsible minister.<ref name="y895">{{cite web |date=18 September 2007 |title=Earthquake Commission Act 1993 |url=https://legislation.govt.nz/act/public/1993/0084/1.0/whole.html |access-date=21 January 2025 |website=New Zealand Legislation |ref={{sfnref| New Zealand Legislation |2007}}}}</ref> Separate ministerial appointments resumed for the twelve years after the Canterbury and Christchurch earthquakes. ;Key {{legend inline|{{party color|New Zealand Labour Party}}|Labour|border=1px solid #AAAAAA}} {{legend inline|{{party color|New Zealand National Party}}|National|border=1px solid #AAAAAA}}
{|class="wikitable" |- !colspan=2|No. !Name !Portrait !colspan=2|Term of Office !colspan=2|Prime Minister |- ! colspan=8 | As Minister in charge of Earthquake and War Damage Commission |- ! style="background:{{party color|New Zealand National Party}}"| ! 1 | Ernest Corbett | 75px | 26 November 1954 | 23 March 1956 | rowspan="2" style="background:{{party color|New Zealand National Party}}"| | rowspan="2" | Holland |- ! height=15 style="border-bottom:solid 0 grey; background:{{party color|New Zealand National Party}}"| ! rowspan="2" | 2 | rowspan="2" | Dean Eyre | rowspan="2" | 75px | rowspan="2" | 23 March 1956 | rowspan="2" | 12 December 1957 |- ! height=15 style="border-top:solid 0 grey; background:{{party color|New Zealand National Party}}"| | style="background:{{party color|New Zealand National Party}}"| | Holyoake |- ! style="background:{{party color|New Zealand Labour Party}}"| ! 3 | Philip Skoglund | 75px | 12 December 1957 | 12 December 1960 | width=1 style="background:{{party color|New Zealand Labour Party}}"| | Nash |- ! style="background:{{party color|New Zealand National Party}}"| ! 4 | Arthur Kinsella | 75px | 12 December 1960 | 20 December 1963 | rowspan=2 style="background:{{party color|New Zealand National Party}}"| | rowspan=2 | Holyoake |- ! style="background:{{party color|New Zealand National Party}}"| ! 5 | John Rae | 75px | 20 December 1963 | 9 February 1972 |- ! style="background:{{party color|New Zealand National Party}}"| ! 6 | George Gair | 75px | 9 February 1972 | 8 December 1972 | style="background:{{party color|New Zealand National Party}}"| | Marshall |- ! style="background:{{party color|New Zealand Labour Party}}"| ! 7 | Bill Fraser | 75px | 8 December 1972 | 10 September 1974 | style="background:{{party color|New Zealand Labour Party}}"| | Kirk |- ! style="background:{{party color|New Zealand Labour Party}}"| ! 8 | Hugh Watt | 75px | 10 September 1974 | 12 March 1975 | rowspan=2 style="background:{{party color|New Zealand Labour Party}}"| | rowspan=2 | Rowling |- ! style="background:{{party color|New Zealand Labour Party}}"| ! 9 | Mick Connelly | 75px | 12 March 1975 | 12 December 1975 |- ! style="background:{{party color|New Zealand National Party}}"| ! 10 | Bert Walker | 75px | 12 December 1975 | 13 December 1978 | rowspan=3 style="background:{{party color|New Zealand National Party}}"| | rowspan=3 | Muldoon |- ! style="background:{{party color|New Zealand National Party}}"| ! 11 | Derek Quigley | 75px | 13 December 1978 | 15 June 1982 |- ! style="background:{{party color|New Zealand National Party}}"| ! 12 | Keith Allen | 75px | 15 June 1982 | 26 July 1984 |- ! style="background:{{party color|New Zealand Labour Party}}"| ! 13 | Fraser Colman | 75px | 26 July 1984 | 15 August 1987 | rowspan=2 style="border-bottom:solid 0 grey; background:{{party color|New Zealand Labour Party}}"| | rowspan=3|Lange |- ! style="background:{{party color|New Zealand Labour Party}}"| ! 14 | Roger Douglas | 75px | 15 August 1987 | 14 December 1988 |- ! rowspan=3 style="background:{{party color|New Zealand Labour Party}}"| ! rowspan=3|15 | rowspan=3|David Caygill | rowspan=3|75px | rowspan=3|14 December 1988 | rowspan=3|2 November 1990 | height=36 style="border-top:solid 0 grey; background:{{party color|New Zealand Labour Party}}"| |- | style="background:{{party color|New Zealand Labour Party}}"| | Palmer |- | style="background:{{party color|New Zealand Labour Party}}"| | Moore |- ! style="background:{{party color|New Zealand National Party}}"| ! 16 | Ruth Richardson | 75px | 2 November 1990 | 29 November 1993 | style="border-bottom:solid 0 grey; background:{{party color|New Zealand National Party}}"| | Bolger |- ! colspan=8 | As Minister responsible for the Earthquake Commission |- ! rowspan=2 style="background:{{party color|New Zealand National Party}}"| ! rowspan=2|17 | rowspan=2|Gerry Brownlee | rowspan=2|75px | rowspan=2|14 December 2011 | rowspan=2|26 October 2017 | style="background:{{party color|New Zealand National Party}}"| | Key |- | style="background:{{party color|New Zealand National Party}}"| | English |- ! style="background:{{party color|New Zealand Labour Party}}"| ! 18 | Megan Woods | 75px | 26 October 2017 | 27 June 2019 | rowspan=3 style="background:{{party color|New Zealand Labour Party}}"| | rowspan=3 | Ardern |- ! style="background:{{party color|New Zealand Labour Party}}"| ! 19 | Grant Robertson | 75px | 27 June 2019 | 6 November 2020 |- ! height=40 style="border-bottom:solid 0 grey; background:{{party color|New Zealand Labour Party}}"| ! rowspan=2|20 | rowspan=2|David Clark | rowspan=2|75px | rowspan=2|6 November 2020 | rowspan=2|1 February 2023 |- ! height=15 style="border-top:solid 0 grey; background:{{party color|New Zealand Labour Party}}"| | rowspan=2 style="background:{{party color|New Zealand Labour Party}}"| | rowspan=2|Hipkins |- ! style="background:{{party color|New Zealand Labour Party}}"| ! 21 | Deborah Russell | 75px | 1 February 2023 | 27 November 2023 |- |}
==See also== *Earthquake insurance
==References== {{reflist}}
==External links== {{Commons category|Earthquake Commission}} * {{official website|https://www.naturalhazards.govt.nz/}} * {{cite web |date=24 January 2024 |title=Natural Hazards Insurance Act 2023 |url=https://legislation.govt.nz/act/public/2023/0001/latest/whole.html |access-date=21 January 2025 |website=New Zealand Legislation |ref={{sfnref| New Zealand Legislation |2024}}}} {{NZ crown entities/Crown agents}} {{Earthquakes in New Zealand}}
Category:Government agencies established in 1945 Category:New Zealand Crown agents Category:Earthquakes in New Zealand Category:1945 establishments in New Zealand