Sep 8, 2021
Closed Borders, Supply Chain Issues, and Labour Shortages—How This Effects Your Insurance Claims
It’s no secret that New Zealand has been experiencing major supply chain issues. We’ve seen this across various industries such as; building and construction, automotive repairs, vehicle imports as well as the hardware industry.
To exacerbate the already pressing issue, are the various other problematic factors such as; shipping delays, port congestion, labour shortages and to top it all off, the recent lockdowns that NZ have endured since the delta outbreak.
The severity of the problem varies across the different industries. It has been especially challenging in the building and construction scene as noted by Mike Blackburn, of Canterbury’s CBS construction co-op. “I had an email this morning from a builder who said it’ll soon be tools down for them as they simply do not have the building materials to carry on working,” Blackburn said.
A survey by the Registered Master Builders found that 95 percent of builders reported issues with delays, increased costs, customer complaints and product substitution- due to a lack of building materials and labour availability.
The building and construction industry is just one example of the supply chain issue that New Zealand is currently facing.
The Impact on Insurance Claim
These shortages in materials have multiple flow-on effects- one of them being that the replacement items from insurance claims take significantly longer to replace than they normally would. Not only are there shortages in materials but also a lack of tradespeople that are available to complete these projects. Experts are now saying that these delays are here to stay for a long while to come.
Understandably, these delays can be incredibly frustrating for both customers and for the industries that have been directly affected. It’s important to keep these delays in mind and remain understanding in an already difficult situation.
One way to make these processes smoother is by working with an insurer’s preferred suppliers as they may have better access to stock, depending on the item.
Please get in touch with your local broker to get a clearer understanding of how you may be impacted during your next claim. As your insurance broker, we may be able to provide a clearer timeline and gauge when your next claim can be expected to be resolved. Especially if items are being sourced internationally or tradespeople are required to fix any loss or damage.
General Advice Warning
The information provided in this blog is to be regarded as general advice. We recommend that you consider the suitability of this information, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider relevant product disclosure statement(s) before making any decision to purchase this type of financial product.
