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WeCan vs Southern Response-NZ Permanent Trustees Ltd.

Case overview

Date filed 15 June 2015
Current status Rejected
Issue Insurance after 2010 and 2011 earthquakes in New Zealand
Summary of the case In September 2010 and February 2011, four major earthquakes and an estimated 13,000 aftershocks devastated the Canterbury region, which includes New Zealand’s second largest city, Christchurch. The earthquakes resulted in 185 deaths and injured 11,432 people. The earthquakes had a major impact on Allied Mutual Insurance’s financial state given the high level of exposure to the Christchurch market, the cost of earthquake support and doubts over its ability to attain reinsurance cover. AMI received capital support from the New Zealand government in 2011 to ensure stability in the insurance market and meet claims by policyholders. The company then restructured in 2012 into two companies, including Southern Response and AMI Insurance.

Two complainants represented by the NGO Wider Earthquake Communities Action Network (WeCan) filed a complaint with the New Zealand NCP alleging that despite being owned by the government, Southern Response undertakes commercial activities through its management of AMI claims and that New Zealand Permanent Trustees Ltd. had a linked business relationship with AMI and Southern Response, because of its then role as trustee for the AMI Member Trust.
Developments/Outcome On 9 March 2016, the New Zealand NCP rejected the complaint stating that neither Southern Response or New Zealand Permanent Trustees Ltd. are considered multinational enterprises and thus the OECD Guidelines do not fall within their scope.
Relevant OECD Guidelines
Case keywords Financial sector

NCP Information

NCP name National Contact Point New Zealand
NCP address P.O.Box 3705 Wellington, New Zealand
NCP website http://www.med.govt.nz/buslt/bus_pol/oecd-multinationals/
Other NCPs involved

Complainant

Company Information

Company responsible Southern Response
Company address
Company website
Company in violation Allied Mutual Insurance
Country of operations New Zealand
Other companies involved

Timeline of developments

Date Actor Action Description Document
9 March 2016 National Contact Point New Zealand reject Final Statement issued by New Zealand NCP download pdf (60Kb)  
15 June 2015 Wider Earthquake Community Action Network file Specific Instance filed with the New Zealand NCP  

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