Inquirers back off one step short of the Supercat Issuers
The arrival of Erin Brokovich (pictured) in Christchurch and her call for those at the wrong end of insurance compensation to “speak up” about the injustice of it all is a further reminder of the obscure role in the earthquake aftermath of the global re-insurers.
Among the most powerful forces force in reinsurance is Berkshire Hathaway. It is considered within the industry to be the leader in supercats which is the category of reinsurance involved in major disasters such as the Christchurch earthquake.
Berkshire Hathaway sells sell policies that insurance and reinsurance companies purchase in order to limit their losses when mega-catastrophes strike.
The company is therefore the major reinsurer of reinsurers.
Though Mr Buffett in New Zealand is frequently the subject of admiring, some might say, adulatory, media coverage the matter of his involvement in these supercats is ignored out of either ignorance or out of fear. Or both.
The matter has similarly been too complex for politicians to contemplate at least openly.
Hurricanes and earthquakes are the two primary factors in the probabilities of supercats.
It is said that Mr Buffett’s supercat exposure can weather at any given time the eventuality of the calculable risk of up to four such eventualities.
Supercat insurance shares with the rest of the insurance sector one quite literally priceless advantage. Payments are received prior to the issue of the policy. In other words, cash up front.
This payment-in-advance gives the industry its cash float which in the case of the supercat sector is immense.
Therefore the following questions need to be asked:-
1. Who are the Christchurch reinsurers?
2. Who reinsures them?
3. Are the ultimate reinsurers solvent?
4. If so why are they not compensating the Christchurch home owners?
Instead the various debates have circled around the role of the primary insurers, the known insurers.
Erin Brokovich, formerly a California legal clerk, and the centrepiece of the eponymous film that starred Julia Roberts is roving ambassador for an Australian-based legal compensation practice.
As an environmental advocate she transcends the routine geomantic abstract preoccupation with global warming/carbon levels and by her presence fixes it upon the unpleasantness of ordinary people in the face of ambitions of big business.
Can Miss Brokovich now force into the light the identities of the entity or entities that hold the supercats over Christchurch and who decline to pay out on them?
| FRom The MSCNewsWire reporters' desk || Tuesday 11 April 2017 |||
Customs Minister Nicky Wagner today welcomed the completion of a key trade system.
Trade Single Window, which is a major component of the Joint Border Management System programme by Customs and the Ministry for Primary Industries (MPI), is an e-commerce platform that enables importers and exporters to meet all border requirements in one place.
“Trade Single Window first launched in 2013 and last month hit a major milestone with its five-millionth transaction. The final elements successfully rolled out over the weekend, meaning the system is now complete,” Ms Wagner says.
“This is the culmination of an incredible amount of hard work by both Customs and MPI. The completed system features four new lodgement types that will further streamline the border clearance process for goods and craft.”
The new lodgements will be available gradually over the coming months.
“Trade Single Window also incorporates the World Customs Organization’s latest data model (WCO3), which will allow border agencies to collect better data for risk assessments,” Ms Wagner says.
“Ongoing support from the wider import/export industry has been crucial in developing a system that works well not only for Customs and MPI, but for industry too.”
| A Beehive release || April 10, 2017 |||
Palace of the Alhambra, Spain
By: Charles Nathaniel Worsley (1862-1923)
From the collection of Sir Heaton Rhodes
Oil on canvas - 118cm x 162cm
Valued $12,000 - $18,000
Offers invited over $9,000
Contact: Henry Newrick – (+64 ) 27 471 2242
Mount Egmont with Lake
By: John Philemon Backhouse (1845-1908)
Oil on Sea Shell - 13cm x 14cm
Valued $2,000-$3,000
Offers invited over $1,500
Contact: Henry Newrick – (+64 ) 27 471 2242