The Battle of the Brains
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On 4 September 2010, Christchurch – gateway to New Zealand’s scenic South Island – suffered a major 7.1 earthquake and before it could recover a further 6.3 earthquake shook the city on 22 February 2011 killing 185 people and damaging well over one third of the buildings in the CBD and tens of thousands of residential homes in outlying areas. The worst affected areas have been designated “red zones” and much of this land will not be built on again. For 18 months Christchurch continued to be rocked by thousands of after-shocks, delaying rebuilding and repair decisions.
You can see a facinating animated time lapse map of all 11730 quakes starting with the 7.1 shock here (give it time to load).
In these circumstances, it is not surprising that recovery, put at a cost of $30 billion, remains tentative and it is against this catastrophic background that the adequacy of insurance arrangements are coming into sharp focus. Along with ground stability, insurance is widely seen as the key to recovery and many coverage issues are now presenting for resolution between re-insurers, insurers and insured as building owners turn to face to the future. What we are learning is that the earthquake has resulted in economic and societal risks far beyond the initial loss of life and injury.
Some of these issues will inevitably be tested in the country’s highest courts but many are being resolved around the mediation table now as the much anticipated rebuild gathers pace, fuelled in large part by a trickle turned torrent of insurance monies pouring into the region.
Read original articleTags: Christchurch, insurance arrangements
