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Earthquake Recovery Minister Gerry Brownlee - Source: ONE News -
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A Government review of the Earthquake Commission will not examine the body's performance in the Canterbury earthquakes.
Treasury will lead the review of the Earthquake Commission Act 1993, it was announced today, which would ''draw on the lessons learned'' in the Canterbury quakes and other events in EQC's 20-year history.
That will include the extent of EQC cover and how much it costs.
Earthquake Recovery Minister Gerry Brownlee said the review was forward-looking.
''It is not intended to provide a management audit of the commission's performance in Canterbury.
''[It] will not affect the processing or entitlements of current Earthquake Commission claims.''
The review will focus on:
- What types of property the Earthquake Commission insures, including the structure and extent of EQC cover.
- How the Earthquake Commission prices its insurance.
- The institutional structure and design of the Earthquake Commission, including its roles.
- The financial management of the Crown's risk exposure and how it should be financed.
''[It] is also an opportunity to consider possible changes consistent with other government initiatives.''
Brownlee said the review would ensure the EQC supported the insurance industry, minimise Crown risk on private property damage and reduce ''the potential for property owners to experience socially-unacceptable distress'' in a natural disaster.
Finance Minister Bill English said the Canterbury earthquakes had been the commission's biggest test.
''In light of the lessons learned from the earthquakes, the Government will review disaster insurance arrangements to look at where changes to existing policy settings are desirable.
EQC has received more than 414,000 building claims and 93,000 land claims from the Canterbury earthquakes.
It has paid out more than $3.3 billion.
Its total bill is expected to be $12.2b.
Treasury will consult other agencies and consider homeowner feedback, and report back with proposed changes in March 2013.