Expert Witness Blog
AMI Insurance was a time-bomb waiting to explode, exposing how woefully ill-prepared New Zealand’s second biggest residential insurance company is to cope with a worst case catastrophe, an insurance expert says.
The Government was forced to bail out AMI with a $500 million financial guarantee after the insurer said it was at risk of not being able to pay out on all claims relating to the February 22 earthquake in Christchurch. Massey University senior insurance lecturer Michael Naylor says apart from AMI’s difficulties, New Zealand’s largely Australian-owned insurance companies are sound with strong A grade credit ratings.
Read more: http://www.stuff.co.nz/business/industries.