The New Zealand insurance sector is on the brink of significant transformation following the enactment of the Natural Hazards Insurance Act 2023 (NHI Act), which officially took effect on July 1, 2024. This legislation replaces the Earthquake Commissions Act 1993 (EQC Act), ushering in a new era of regulatory compliance, updated product offerings, and revised claims handling procedures.
Gallagher Bassett is leading the charge in adapting to these changes. The company has emphasized the importance of staff training and upskilling to navigate the evolving landscape and better serve their clients. Investments in technology, including advanced loss adjusting and claims management systems, are also central to their strategy.
Todd Niccol, Operations Manager – Natural Hazards at Gallagher Bassett New Zealand, highlighted the benefits of the NHI Act: “The NHI Act streamlines claims procedures and fosters increased collaboration between the Natural Hazards Commission (NHC), claims managers, and insurance carriers.” Niccol added, “It offers clearer guidelines on eligible buildings, particularly multi-unit buildings (MUBs), and clarifies key terminology, making the process more transparent and accessible for both customers and claims teams.”
A significant aspect of the NHI Act is the enhancement and clarity it brings to the claims process, alongside the formalization of insured individuals’ rights through the Code of Insured Persons’ Rights (the Code). This Code, which applies to all interactions with homeowners from July 1, 2024, mandates that the NHC and any associated claims managers adhere to new obligations for managing and settling claims. It also introduces new settlement entitlements and a dispute resolution pathway.
In response to these changes, insurers must update their claims handling processes and ensure that their staff are adequately trained. Niccol emphasized the importance of this transition: “The Code provides customers with a clear pathway for addressing disputes or concerns about their natural hazards claims or treatment received.”
Gallagher Bassett is investing heavily in both personnel training and technological advancements to support these changes. The company has incorporated drone technology for site assessments, desktop adjusting tools, and lidar 3D modeling for building inspections. These innovations are designed to streamline the claims process and improve overall efficiency.
Additionally, Gallagher Bassett is deploying new loss adjusting and claims management systems that facilitate better data sharing and reporting among insurers. “These new systems will enable insurers to view and share data more effectively, driving enhanced reporting and deeper insights,” Niccol concluded.
As the insurance industry adapts to the NHI Act, Gallagher Bassett’s proactive approach underscores the broader shift towards more efficient and transparent claims management in New Zealand.
