business praveen

8/2/2019 Business Praveen

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INSURANCE, BUSINESS, INNOVATION,EDUCATION, AND CREATIVITY



INSURANCE

470,000 claims filed with EQC after Feb 2011 quake

EQC pays out NZ$100,000 on structural damage and NZ$20,000for contents

Insured losses from Christchurch >$18 billion (Feb 2012 estimate).

ChCh earthquakes + Australian floods + Japanese earthquakeand tsunami +American tornados > $77 billion.

Most expensive global insurance bill recorded in 6 months

On the bill, New Zealand accounts for almost a quarter

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Residential Green Zone – the repair / rebuild process can begin

• No significant land issues

• Land damage may be present, but can be repaired• Insurers can continue claim settlements.

There are about 100,000 homes in the residential green zone.

Residential Orange Zone – hold, further assessment required

• Damage following event on 13 June 2011 requires further assessment• Land damage ranges from moderate to severe

• Many buildings are uneconomic to repair • Extent of infrastructure damage is unclear.

There are about 10,000 homes in the residential orange zone.

Residential Red Zone – remediation would be prolonged and uneconomic

• Land has suffered significant and extensive damage

• Most buildings are uneconomic to repair • High risk of further damage to land and buildings

• Infrastructure needs to be completely rebuilt• Land repair solutions would be hard to implement

There are about 5,000 homes in the residential red zone

Residential White Zone – unzoned, unmapped

The Port Hills – the event on 13 June 2011 has caused further extensivedamage. Mapping and assessment is underway.

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General issues

- Catastrophe was underestimated and many insurers

had miscalculated their reinsurance arrangement- Insurers leaving the country leaving clients helpless- Insurers may become more selective with inspections

(checking for rotting structural members) before insuranceis given.

- Sharp price spikes in new premiums and excesses(some as

high as %80)- The bulk of the money to settle claims is coming from the

international reinsurers- The relative small size of NZ has allowed it to be a minor

concern for reinsurers. Following the catastrophe however,its costly potential as a liability has bee recognised. Now

we are seeing reinsurers pulling out- The full costs of the quake are still a long way from being

fully understood

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Notable Insurance related Crisis

Ansvar, the company which has insured 75%(~400) of Kiwi churches, will quitoffering any kind of insurance in New Zealand from the end of the year. Thecompany is facing $700 million of claims.

AMI (NZ’s 2nd largest residential insurer) may be in need for a governmentbail out of $340 million to payout its 100 000 CHCH policy holders.

Tower insurance profits were down 43% from the previous year

European debt crisis is exacerbating the situation as many reinsurers arebased in those countries (such as Lloyds in London)

The GNS Science groups claim there is a 23% chance of a major earthquakein Christchurch in the next 12 months

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Compensating Damage to Businesses

Canterbury will lose $500 million of tourism from international visitors for atleast a year after the earthquake

Businesses have taken cash grants to support 69 533 workers whose jobs canbe lost

Business compensation so far is worth $161.7 million

The Government is focusing its analysis on how many workers would beable to keep on rather than how many could lose jobs

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BUSINESS

Tourism, natural resources, primary production and abundance of natural

water within the region make Christchurch among the top most businessfriendly locations in New Zealand.

Bob Parker Christchurch Economic Development Strategy (August 2010)

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Yearly Comparison of Major Business Sectors

Notable decreases of sectors over time: agriculture, forestry, fishing, wholesale and manufacturing

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The annual report conducted from a Christchurch based agency identified a number of localbusinesses as nationally high ranking companies

Tait Communications - ranked 4th overall in the report, this company is a global leader indesigning, delivering and managing critical communications solutionsfor organizations around the world

Stickmen Studios - critically acclaimed game developers

CerebralFix - leaders in social gaming space, which has worked with internationalgaming giants like GSN and EA Games

SLI Sytems - develop learning-based search and navigation technology for

publishers, e-commerce and corporate sites

Motim Technologies - develops software for the mobile marketing sector

The TIN100 Business Report

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INNOVATION

Old industries are disappearing. That is to say that value added into in cities is createdless through what we manufacture and more through the application of newknowledge to products processes and services.

Richard FloridaCreative Cities: Cultural Industries, Urban Development and the Information Society

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Innovation within Christchurch

Invert Robotics

Invert Robotics is thecompany formed tocommercialise thisbreakthrough by Universityof Canterbury’s Director of MechatronicsEngineering

Koti Technologies

University of Canterbury

Associate Professor SusanKrumdieck is an Americanimport to New Zealand.She was recently nameda lead investigator in theUS National HypersonicScience Centre for Materials and Structures,funded by NASA and theUS Air Force.

Hydroworks

Hydroworks has so far completed 22 projects,which it is leveraging tocompete in bids of ever-increasing value.

ArcActive

ArcActive has developed a leadcarbon battery for micro hybridcars using a continuous system for the production of carbon

nanotubes (CNT’s) and activatedcarbon.

CropLogic

Over the last year,CropLogic has focused onthe global potato industry

– the world’s fourth largest

crop.

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EDUCATION

Education is a major export industry for New Zealand, generating $2.5 billion per year

in foreign exchange.

Hon Steven Joyce, the Minister for Tertiary Education

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Qualification comparison between Christchurch and New Zealand

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Employment breakdown summary within Christchurch

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Regional comparison of international students

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Composition of foreign students

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CREATIVE INDUSTRIES

Between Lincoln University and Christchurch Polytechnic Institute, the region iscapable of producing graduates and post graduates in the following fields

Architectural Studies

Art and Design

Computing

Applied sciences

Engineering

Broadcasting

Performing arts

Sustainability education

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Portion of businesses identified as Creative class: 13.2%

Portion of workers identified as Creative class: 9.2%

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CONCLUSION

To grow a sustainable economy, growing sustainable employment opportunities

is pivotal

Shrinking sectors of primary production

Education is the key to restructure the composition of employment sectors

Creative class, technology and innovation creates interest, investment and

ultimately smart growth to the region

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