New Zealand insurance carriers need to update their claims handling processes and ensure their staff are trained accordingly in order to adapt to the changes brought by the implementation of the Natural Hazards Insurance Act 2023 (NHI Act).
Gallagher Bassett has prioritised training and upskilling its staff to ensure they are ready to embrace these changes and support their clients.
They have also invested in technology and implemented new loss adjusting and claims management systems for both NHC and General Insurance claims.
The NHI Act came into force on July 1, 2024, replacing New Zealand’s the Earthquake Commissions Act 1993 (EQC Act).
This has brought a variety of changes for insurance carriers, including regulatory compliance, product offerings, and claims handling, setting the industry to go through a period of transformation.
“The NHI Act simplifies claims procedures and promotes greater collaboration between NHC, claims managers, and insurance carriers,” said Todd Niccol, Operations Manager – Natural Hazards, Gallagher Bassett New Zealand.
He continued: “In addition to these changes, the NHI Act provides clearer explanations regarding eligible buildings, particularly multi-unit buildings (MUBs), clarifies key terminology and ultimately makes the process clear and accessible for customers and claims teams.”
Enhancement and clarity of the claims process through the NHI Act is central to the change, as well as the formalisation of the rights for insured people via the Code of Insured Persons’ Rights (the Code).
This applies to all interactions with homeowners occurring after July 1, 2024, regardless of when the homeowner’s claim was made
The Code sets out associated obligations on the Natural Hazards Commission Toka Tū Ake (NHC) – formerly known as the Earthquake Commission – and any claims managers working on its behalf to manage and settle claims.
The Code and the NHI Act includes the introduction of new settlement entitlements and dispute resolution pathway.
In order to adapt to all the changes insurer’s claims handling processes will need to be updated and their staff will need to be trained accordingly.
Niccol stated: “The Code gives customers a clear route to take when they disagree with the outcomes of their natural hazards claim or wish to make a report about how they have been treated.
“Gallagher Bassett has prioritised training and upskilling our people to ensure they are ready to embrace the changes of the Code and NHI Act and support our clients throughout this transition. Our extensive training has focused on new regulations, terminology, processes, and how to leverage our approach to service to ensure effective and timely communication with all parties.”
He added: “We have partnered our commitment to service with investments in technology that supports greater outcomes. This includes drone capabilities for site assessments, desktop adjusting tools, and lidar 3D modelling of internal buildings at inspection time. Our investment in these tools will ensure our people are equipped to expedite the claims process.”
“To further enhance collaboration, Gallagher Bassett is implementing new loss adjusting and claims management systems for both NHC and General Insurance claims. With this system, insurers can view and share data to drive enhanced reporting and greater insights.”
