New Zealand earthquake insurance: the government and the market integration

New Zealand earthquake insurance system known as the world's most successful operation of the existing disaster insurance system one of its main features are: State law establishing its own national conditions of the multi-channel catastrophic risk decentralized system and take the government acts with a combination of market behavior The road as far as possible to spread catastrophic risk. New Zealand volcanic earthquakes in the Pacific Rim put, is earthquake-prone countries, the average annual earthquake nearly 3,000 times, the fight against natural disasters have become part of the New Zealand public life. According to the New Zealand Earthquake Commission press officer, in 1942, located in the central part of New Zealand capital Wellington region and the Wairarapa region had suffered a magnitude 7.2 earthquake attacks, causing massive housing construction severely damaged. Many houses in a few years have failed to repair the main reasons is not enough insurance compensation.

In order to learn from this lesson, the Government of New Zealand in the 1945 war and the establishment of the earthquake damage to the Commission, will later include other natural disasters, war damage and cancellation insurance. At present, earthquake catastrophe risk insurance provided by the insurance coverage include: earthquakes, mountain landslides, volcanic eruptions, tidal waves and geothermal activities, its purpose is to help people in New Zealand as soon as possible after natural disasters and rebuild their return to their homes