The Dunedin City Council has secured ''significantly''
improved insurance cover for $3.4 billion of ratepayers' assets
after seeking a better deal in London, it has been confirmed.
Council group chief financial officer Grant McKenzie told the
Otago Daily Times the council's insurance cover had
been renewed, within budget and with improved terms, in
That followed Mr McKenzie's trip to London in April, where he
met 15 representatives from specialist insurance market
Lloyds of London, including from All Blacks' sponsor AIG.
The trip had aimed to improve the scope and cost of the
council's existing cover, while spreading it between New
Zealand and international insurers.
The council was left without insurance for at least $1.6
billion of its assets following the Canterbury earthquakes,
after international reinsurers refused to cover underground
assets and the council refused to pay inflated premiums for
Mr McKenzie said, as a result of his trip to London, the
council now had direct backing from international insurers
through the Lloyds market. That included expanding the scope
of what was covered, although Mr McKenzie was reluctant to
divulge details yesterday.
''The market moves for and against you at times.
''It appears the market has moved for us, significantly,'' he
Details of the new deal would be disclosed in a report being
prepared for the next council finance committee meeting on
July 28, he said.
''It is a good news story.''