Southern Response- Govt Review


Here is a link to the report by the Parliament Finance and Expenditure Committee in its annual review of the 2014/15 performance and current operations of Southern Response Earthquake Services Limited.  This is the first review of Southern Response.  The report raises concerns about the ability of Southern Response to settle all claims within the amount allocated by the Government and the payment by Southern Response of bonuses to staff based on their claim settlement record.  Southern Response so far has paid $3.3M to staff as bonuses.  The Committee was concerned about the possibility that policy holders were not receiving their correct entitlement to enable the staff to receive a bonus.  The report also notes that Southern Response has spent about $10M on legal fees and has budgeted a further $4M for this year.