IAG takes over AMI's 500,000 customers
MARTA STEEMAN Last updated 12:34 05/04/2012
However AMI customers' earthquake claims are to handled and settled by a Government-owned company Southern Response, which has about 160 AMI staff.
Southern Response is based in Christchurch and is backed by the Crown Support Deed to settle earthquake claims.
AMI, a casualty of the Canterbury earthquakes, has already paid out $300 million of claims.
The remaining $1.5 billion will be settled by Southern Response.
AMI has been separated effectively into two companies.
AMI customers are insured with the ''new AMI'' now owned by IAG, but they will also be customers of Southern Response if they have claims for earthquake damage occurring before today's sale.
Should another earthquake or catastrophe occur after today, claims for any damage from these events become the responsibility of the new AMI, owned by IAG, not the responsibility of Southern Response.
As of today Southern Response is responsible for settling more than 11,000 claims to 6670 Canterbury properties where damage exceeds the Earthquake Commission cap of $100,000 plus GST.
It will also settle nearly 22,000 claims for damage to paths, driveways and other external structures which are not covered by EQC and about 1500 claims including contents, loss of rent and motor vehicle.
AMI customers with ''over cap'' claims are entitled to choose either a cash settlement to buy another home or have their homes repaired or rebuilt in accordance with their policies.
Southern Response is to be chaired by Ross Butler of Nelson who has experience in financial services and insurance-related companies.
The new chief executive of Southern Response is Peter Rose who has been with AMI since May last year.
The old board of AMI has been disbanded.
Butler said it would ''take a while'' to work through the complex issues around the earthquakes.
They included apportionment issues with EQC, uncertainty in land zoning, and land damage in the TC3 (green-blue) zone.
"We're going to take a collaborative approach to working with the other government agencies and insurers so our customers can get on with their lives, and rebuild their city and region as quickly as possible," Butler said.
Rose said a lot of effort had gone in to ensure AMI policyholders had ''a seamless service'' in the transfer of their earthquake claims responsibilities to Southern Response.
"Customers with an AMI earthquake claim will notice very little difference and don't have to do anything differently in their claim dealings,'' Rose said.
Southern Response had the same team of around 160 people who had been managing earthquake claims by AMI policyholders since September 2010, using the same processes.
All that had changed was the name, and there was a new 0800 number (0800 501 525) and the company they worked for was now government-owned, he said.
Rose said when the last claim was closed, so was Southern Response.
The Reserve Bank, the regulator of insurance companies, confirmed this morning it has granted the new AMI a licence to operate in New Zealand.
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April 12, 2012, 08:28:45 PM