Southern Response Earthquake Services Ltd is the
government-owned company responsible for settling claims by AMI
policyholders for Canterbury earthquake damage which occurred
before 5 April 2012 (the date AMI's day to day insurance business
was sold to IAG).
Southern Response is staffed by the same team of around 160
people who have managed earthquake claims by AMI policyholders
since September 2010. So it's the same people using the same
processes - all that changed was the name (to Southern Response), a
new 0800 number (0800 501 525) and the company is now
The ongoing series of earthquakes since September 2010 had a
profound impact on AMI and its Canterbury customers. As a result of
the unprecedented cost of earthquake claims, in April 2011, AMI
received capital support from the New Zealand Government to ensure
the interests of all AMI policyholders were protected and all
claims would continue to be met under the terms of their
On 5 April 2012 AMI separated into two companies:
- Southern Response - the new company name for
AMI's former earthquake claims management team. Southern Response
is a Government-owned company.
Southern Response is also financially responsible for a small
number of claims resulting from events occurring before today, such
as the recent Nelson floods and some snow damage claims, which were
not part of IAG's purchase of AMI (although these claims continue
to be managed day to day by AMI).
- AMI Insurance - this 'new'AMI company is now
owned by IAG as of separation on 5 April 2012. It kept the AMI name
and logo and continues to provide day to day insurance.
AMI is responsible for all claims for any damage (including
earthquakes) which occur after 5 April.
AMI policyholders with earthquake-related claims continue to be
customers of both the 'new AMI' and Southern Response until their
earthquake claim is settled.
Claims Responsibilities and Funding
As at 5 April 2012, Southern Response is responsible for
settling an estimated $1.5 billion in earthquake claims
- Just over 11,000 claims to 6670 Canterbury properties where
damage exceeds EQC's $100,000 plus GST 'cap' for an earthquake
- Nearly 22,000 'out of scope' claims, for damage to paths,
driveways and other external structures, which are not covered by
- Around 3,000 temporary accommodation claims, which are not
covered by EQC
- Around 1,500 other claims including contents, loss or rent and
Some AMI policyholders are entitled to a cash settlement option
while others have their house repairs/rebuilds managed by Southern
Response's project manager, Arrow International. Current estimates
indicate this work will involve Southern Response being responsible
for the rebuild or repair of over 6500 homes.
Southern Response will firstly use the available reinsurance
cover AMI had in place for each earthquake event to settle
earthquake claims. Additional funds will come from retained capital
from the sale of AMI to IAG and other retained assets.
Southern Response also has funding available from the Government
if required to ensure every earthquake claim it is responsible for
is fully settled under the terms of the insurance policies.
As claims are settled progressively over coming years, Southern
Response will gradually wind down and then close.
Ownership Structure and Governance
Southern Response is a Crown-owned company with a Board of
Directors appointed by the Crown as sole shareholder.
Southern Response is incorporated under the Companies Act
1993 and is listed in Schedule 4 of the Public Finance Act 1989.
The company's shareholders are the Minister of Finance and the
Minister of Earthquake Recovery.
For further information for AMI customers with an earthquake
claim for damage which occurred prior to 5 April 2012 (when AMI was
sold to IAG) , click here.
To contact AMI, click here.