Who Can You Trust? Who Do You Trust (Read Time 1:41)


Who do you trust? Who can you trust? With happenings in Auckland, New Zealand mayoral politics recently, the NSA spying, and other revelations, we find ourselves in interesting times. With the invasive growth of social media we live in a world of increasing transparency. Corporates and Governments which have thrived on sharing only what they think people need to know are losing that battle.

I’ve been reading article in The Futurist by Rolf Jensen, Chief Imagination Officer (I like that title!) of Dream Company in Denmark who compares today’s society to the first Renaissance. Gutenberg’s Press accelerated the spread of new ideas, and the golden age sprung out of the middle ages where much of the world was controlled by a religious hierarchy.

FragWe have a similar break-up to political hierarchy’s now, particularly in but not limited to the Middle East and Europe, and like the Gutenberg Press, Social Media is now making important information available to the masses, most significantly in real time. This means that it isn’t possible for governments and corporations to use smoke and mirrors quite so much. With trending information, we can see right past the kaleidoscopic obfuscation to what is really going on.

Here are some interesting statistics that Rolf shared in his article in The Futurist:

  • From Pew Research: In the 1960′s 75% of the US public trusted their Government. In 2010 the result was 25%!
  • The European barometer polled UK voters in 2005 and found a trust level of only 34%. In 2012 that was down to 21%.
  • CEO’s of large corporations are trusted by 45% of the US population (almost double the number that trust their politicians, that’s positive isn’t it?)
  • Gallop says that teachers are trusted by 84%. That’s great news isn’t it. What a shame they get one of the smallest parts of the budget!

Back to social media though, what we are doing is finding groups of people that we do trust and building a new society. We’re sharing knowledge and information in countless ways that have immediacy.

As an example, in my new eBook, Buying a House – Using Real Estate Apps, Maps and Location Based Services, I speak a lot about using social media to research where to live. I cover questions like where to find people who are like you, or people who can tell you about a suburb or area, who have nothing to gain by sharing that information. Who can you trust to give you honest information?

I feel very grateful to live in such exciting times where the power is gong back to the people. Of course ‘the people’ do have to take the power and whilst everyone subsequently had an opinion on Mayor Len Brown’s indiscretions, only 33% turned up to vote in the Auckland local Government elections. I do like the saying ‘You get the Government you deserve’.

So who do you trust? Who do you go to for advice? How are you going to use the information now available to you, to help build the world you want for yourself and your children? How will you contribute?

Comments welcomed.

Consumption 2.0 and Mobile Society


I’ve just read an article by Hugo Garcia of Futures Lab in Portugal in the latest issue of The Futurist. He was outlining how younger people today are more mobile, more focussed on consuming goods, services and experiences, rather than being attached to things and places. One area that he was strong on was the fact that people are now so mobile and keen to explore the world and their environments.

Location becomes far more important because you are continuing moving around as opposed to tied to a fixed location in the world. He said that one example is the trend towards not owning a home, perhaps ever. I always hear talk about how hard it is to get into property, I don’t think it has ever been easy. When we bought our first home (to give ourselves and our children some long term security) we bought in a cheap neighbourhood and at one stage were paying in excess on 20% interest. For a couple of years in the beginning, we went without pretty much anything, just to pay the interest. Today many don’t want to restrict their lifestyle, making it a choice, their choice is to live for today.

The ‘office’ is for many people today, especially knowledge workers, not somewhere we need to be a lot of the time and the cost of maintaining an office, commuting, car parking (you could almost rent a room for the cost of my Auckland City car park). We go to the office when we need to, for meetings, teamwork etc, but otherwise I can be much more productive from my home office.

White BikesHugo talks about shared mobility. This is not a new concept, but certainly one that is coming back with a vengeance. Back in the 1960′s the Provos introduced white bikes that anyone could use. The idea was that you grabbed a bike, rode it to where you wanted to go and left it there for the next person to use. Their concept, same as today was to reduce pollution and traffic congestion and promote community engagement. They were certainly engaged as very quickly the bikes were stolen and repainted, but the idea was very good.

Today carpooling continues to grow, Zipcars, recently purchased by Avis, which is currently being debated as to whether it was an anticompetitive manoeuvre, is an example of car sharing, which in principle makes a lot of sense. People share ownership in boats, holiday homes and other items and many people are travelling around the world using the services of portals like Airbnb. There are loads of companies sprouting up like Whipcar, which lets you rent out your own vehicle when you don’t need it.

Globalisation is also an area that is changing rapidly. I remember reading history books about the great depression and how people moved from town to town looking for work. Mobility today is something far more international and international borders are being crossed continually by people in search of work, whether it is because they can’t find it at home, want a better life, or simply enjoy the itinerant lifestyle. Over a million Kiwis are working and living overseas, while British and other nationalities are moving to New Zealand to work on projects such as the reconstruction of  Christchurch.

Hugo points out there are pro’s and cons. “Unfortunately, some areas may become abandoned because they lack competitive advantages. The war for talent between countries will increase, but regions that offer good living conditions may gain an advantage.

I note again that knowledge workers, one of the biggest industry segments today can often work from anywhere and travel when required. I know many journalists and developers that live in small towns for the lifestyle, but can still perform on a global stage.

This mobile society opens up huge scope for innovation and disruption, particularly with location based services, applications for mobile use, which can support the new mobile lifestyle. Kiwi developers can and are developing applications used globally, despite those that say you can’t be successful unless you are in Silicon Valley, things are changing. The money may be there, but they don’t have a monopoly of good ideas.

If anyone knows about a mobile lifestyle its Kiwis, anywhere is a long way from New Zealand. We know how to travel, we absorb and learn and we love new technology. Where we need help is harnessing our smarts, to help our innovators and entrepreneurs to learn how to scale and think big. That’s a tough ask and I don’t think our Government is doing anywhere near enough to ensure that smart people are able to grow from small concepts to large global enterprises.

I was just asking myself how I suddenly got on my soap box, but then I’m not sure I ever get off it:)


Luigi Cappel:

Locating people via GPS has been a hobby horse for me for many years as you will know if you follow my blog. Perhaps crises like these will help us get funding to develop suitable solutions.

Originally posted on Imersia NZ:

The bushfires are raging in Australia, temperatures are breaking records daily and the traditional hottest months haven’t even arrived yet. Meanwhile Imersia has been developing a technology that can reduce stress, improve efficiencies, information flows and potentially save lives in future.

It seems ironic watching this BBC News clip after watching a story on BBC News a couple of nights ago claiming that global warming is slowing down when in Australia the record books are being broken almost daily. Temperature maps on TV are being upgraded with new extreme grades and fire warning signs on the road now include Catastrophic as a condition. Catastrophic

First of all we want to wish all the best to our Australian cousins across the ditch who are personally involved or have friends and family in areas affected by this year’s terrible bushfires. I can’t imagine what it must be like, other than horrific and very frightening. Whilst we…

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Will Bitcoin Become the new Cash?


I’ve written a number of times about mCommerce and digital wallets. Now we have loads of companies offering services for electronic payment. These include the Apple Passbook, and many apps using NFC or other means to exchange money. The key thing that joins the hundreds of apps available is that they are legitimately tied to credit cards and banks. As such they provide audit trails and of course tie the world economy together as much as that is possible.

In the future I have postulated that actual paper money will decline and potentially phase out. I could see that happening in New Zealand faster than many other countries. We only have a small number of banks and clearing houses and as such were able to be the first country to mass adopt EFTPOS in the retail environment. Many people no longer carry cash.

However there is of course the grey market and one of the challenges there, is that people who do not want their money transactions audited. There is a global economy like this. People who are paid under the table for their work, people who deal in illegal activities such as drug sales, stolen goods and others. There are also people who just want to opt out of the system or at least flip it the bird. Cash of course can work around the system easily, there is money laundering and people will accept cash for most things as I experienced a few years ago when I watched a guy buying a used Ferrari with folding money he pulled out of his denim jacket pocket.

Much of this money circulates around the system but not through it and this is a challenge if hard cash currency ceased to exist. Or is it.

Yesterday I was on my way to a Microsoft Cloud presentation (which I will blog about on one of my blogs) either SoLoMo Consulting, or Imersia). I was a little early, so I sat in my car and read the latest awesome TNW Magazine on my iPad. Its a great magazine which I recommend you read if this blog is of interest to you, because it is the Money issue. There I learned about Bitcoin.

Bitcoin is “Bitcoin is an experimental new digital currency that enables instant payments to anyone, anywhere in the world. Bitcoin uses peer-to-peer technology to operate with no central authority: managing transactions and issuing money are carried out collectively by the network. Bitcoin is also the name of the open source software which enables the use of this currency.”

Effectively here is no bank, no fees, no audit trail. There are all sorts of businesses, even retailers, who will accept payment in Bitcoins just as businesses accept payment in other forms of money, such as Bartercard Dollars. The difference again of course is that Bartercard still connects to the banks, has an audit trail and the Governments continue to collect their taxes.

Ultimately my question is, will Governments allow this sort of  “experimental currency” to continue? Can they stop it? It appears to already have a massive following. You can buy a coffee with it, you can play poker with it. There are sites where you can buy and sell Bitcoins such as Mt. Gox and there ar others too, although I noted that one of those has dissapeared and I noted a story there that Barclays had stopped allowing people to trade with them.

So what happens if the authorities stop Bitcoin? (assuming Google or someone else don’t buy them, but Bitcoin does seem to have an anti-establishment feel to it, but it could be all about the money).  Well there is also Dwolla,  LibertyReserve, and a host of other systems. I suspect that as cheap smartphones gain mass adoption in the blue collar world, there will be more interest and demand for ways to continue to do ‘cash deals’ without cash.

Futurists are talking about the Local-Global Duality with shifting borders and changing geopolitical landscapes. The one thing keeping us together as countries, or pulling us apart is money. Financial institutions and Governments  are struggling to maintain a status quo that will keep countries running. As countries grow deeper in debt after the GFC people rush to take their money out of the banks for fear of losing it altogether, which in turn intensifies the crisis.

Farmville Tractor

ex

I’m not saying I agree with currencies like Bitcoin. I still want my roads and infrastructure, order and safety in my community. I believe that one way or another money from illegal activity still works its way back in, like the guy I watched buying a car for over $30,000 in folding. I do suspect however that we will see a proliferation in ‘currencies’ like this in the future. I also suspect that the criminal elements in our societies could be the ones with the most to gain from them, but also that there will be many scams which will be developed to trick people in giving up real money for virtual currency which they will never be able to repatriate. Silly really, when they can legally create computer games and sell virtual stuff and pay tax on legally earned activity with much less risk.

What Do You Hate About Car Parks?


I recently asked you what you liked about car parks. I guess based on 25 votes and 3 comments, most of you don’t really think about this subject, which is fine. I appreciate your feedback.

So lets look at the negative side of car parking. What do you dislike about car parks? I can think of lots of things and maybe I can start you off with a few things to think about and I will also add another poll.

I went down to the new Wynyard Quarter a couple of weeks ago on a sunny Saturday for lunch. We thought we’d have a look at this new development, have lunch and enjoy the new showcase area in Auckland. We drove the 30km from our home, drove through all the car parks, couldn’t find a single park (this was around noon) and after 20 minutes of crawling in circles went to Takapuna for lunch. I hate going somewhere and not being able to get a park.

I hate not being able to find a suitable car park close to my destination when its raining. We’ve had more than our fair share of that this winter in New Zealand.

I hate car parks with small parking spaces and large pillars, which going by the black and other colour scrapings on them, do more than their fair share of damage.

Car parks with small spaces means that often motorists overlap into the park next to them, so that that the vacant park is rendered useless to anything other than a Beetle or a motorcycle.

I hate car parks where the machines only take cash and I very rarely carry cash any more.

I hated having my car broken into in a public car park and finding that the only video security available was there to stop people leaving the car park without paying! I haven’t used that particular car park since. I either walk further or go to a more expensive one in that area.

I hate car parks where the machine doesn’t work and all the staff seem to have gone on a break.

I hate parks that cost more than the activity I want to consume.

So how about leaving a comment and participating in the poll, you can even create a new question in it yourself. I am going to be presenting to the Parking Association later this year at their annual conference and want to give them an idea, positive and negative about their business. This includes curb side parking by the way. Any car parking dislikes at all.

I haven’t forgotten special needs car parks, but I want you to tell me about your experiences:)

As a footnote, this is not a bitch session. We are a motoring people and we need car parks. I am looking for feedback with a view to coming up with ideas as to how to make car parking more user friendly and attractive. I believe that there are many improvements possible and many opportunities for car parks to engage with their users and their community.

Creating jobs with FIT for renewable energy


So how about this picture. If the Government gives us interest free loans to install solar panels on roofs, we could reduce the need for expanding coal and oil based electricity, whilst maintaining our geothermal and hydro production.

The Government would set up Feed In Tariffs enabling power companies to purchase spare power units to feed in to the grid to supplement its own resources and those of the community as and when required.

The technology would include smart meters where appliances and power consumption may be monitored by the consumer This is already available in NZ from companies such as SmartNow. This is very important because it educates consumers of all ages  as to the impact of each household appliance.

Smart Meter

You would be able to monitor this on your SmartPhone as well as the touch screen in your home, perhaps even control appliances remotely. Now you will know if you turn your 3 TV’s off instead of having them on stand by, exactly how much energy and cost you are saving.

Many of our household devices are developing sufficient intelligence to be turned on and off remotely. This can apply to anything from your stove or microwave, to your TV Set Top Box, washing machine, heating etc.

Kiwis are very clever. With a little encouragement and support, we could have people coming up with new technologies for smoothing power, sharing and reticulating, designing solar panels that look good and work more efficiently in our environment.

Whole new industries and thousands of jobs would come out of this. Educators, estimators, designers, manufacturers, installers, inspectors, service people, finance companies, new boutique electrical companies, to name a few.

New Zealand is an island and we can be potentially isolated from gas and fossil fuels, especially if the worst happened and a serious war broke out somewhere on the planet.

Do you think that in the Middle East, Europe or USA, they would be saying, oh don’t forget New Zealand, we must set aside x number of tonnes of crude for our antipodean mates down under? But I digress. We are smart people and I think we could create not only some serious domestic growth, but our inventions spawned from this adventure could also contribute to some huge potential export revenue through the innovations that we would produce.

We also made a commitment to being clean and green. Digging up coal and gas doesn’t exactly honor that commitment, although I agree we need the money. Maybe we can’t do it with solar and wind alone, but if we could produce even half of our requirements from our roofs whilst at the same time reducing power consumption through smarter use and education, wouldn’t that be cool?

We could also lead in international design and R & D, with companies like Fisher & Paykel in the development of new technologies that burn much less power, including heating, consumer electronics and more. We need revival of new companies like Gallagher, Rakon and Taits, which have shown that we can be world leaders in technology. Those number 8 fencing wire companies we are so proud of.

The problem is that all of this needs to start with the politicians and all I seem to hear from them is that the coal, oil and gas is worth a lot of money and we should sell them. OK, if we need to do that because New Zealand is insolvent, then do it, but put the money earned into renewables, try to make ourselves self sufficient and then develop export revenues by exporting the technologies we built and developed locally, exploiting our IP. Kiwis are smart people.

Come on National, Labour and Green Parties, lets take a long term view beyond the next election. Change only happens when you do something different. Make it happen and you can have the credit if that is what drives your ambitions, but lets show our leadership.

I didn’t mention tourism, but I don’t think people really buy into clean green anymore. Lets show them we can be clean and green and beautiful and then generate export revenue out of our new skills and industries.

As a footnote, a quote by Farrell J. January 2011 on the Ontario FIT which started in 2009 from New Rules Project:

Ontario’s clean energy program encourages local ownership and distributed generation, in part to broaden support for renewable energy and in part to capture the increased economic impact generated from local ownership.

The domestic content requirement has already resulted in the promise of 43,000 jobs and dozens of new manufacturing plants to support the 5,000 MW of new clean energy.

As a footnote, imagine if the panel didn’t have to be on your roof, but could be on every one of your windows and you could see through it? That’s what MIT is hoping for. 

Electricity, disasters and Feed In Tariffs


I’ve been itching to write more about FIT for ages as you will know if you have been reading my blogs. If you didn’t, my last blog was pretty much a summary of my thoughts which started with the Christchurch earthquake.

Prior to that for a few years I have been wondering why a ‘clean green’ country like New Zealand only went so far as to provide subsidies for roof insulation and clean heating. Where is the NZ Green Party on FIT, I asked 2 years ago. I’m not even sure where the party is on much at all at the moment and its election year, when National has launched its new policies on oil and gas and other efficient power sources like coal.

In fairness I do have to acknowledge that Environment Minister Nick Smith did through caution to the wind at the NZ Wind Energy Conference this month, but he also made the point that you need windy places and probably also noted the frequent opposition any time someone wants to set up a wind farm. Personally I like them and if they are silent, I wouldn’t have a problem looking up at them on a hill somewhere.

Dutch windfarm

I have 2 interests here, the first one is renewable energy in the form of solar panels, with the ability to feed power into the grid, but also the ability to make individual households and businesses more resilient in times of crisis.

The common thread anywhere in the world when there is a disaster is that the power goes off. In my recent posts this month I have discussed a whole range of issues where we are so reliant on electricity today that there are a variety of problems after the crisis is over.

I want to again acknowledge the heroism of electricity workers and supporters who risked life and limb to get things up and running as quickly as possible.

Anyway, back to my story. Imagine if we followed on from the subsidies to put insulation into our roofs, by offering subsidies and Feed In Tariffs for installing solar panels on the roofs. This is something we should be doing anyway, but imagine if a large number of people were still able to have at least some electricity when the grid is down. They would still potentially have phone communication, they would have lighting, heating, the ability to wash themselves and much more.

We could find ourselves with a renewable energy source that doesn’t pollute, makes people much more aware of power consumption, involves the community and provides greater resilience while allowing us to get closer to meeting our commitments to reducing carbon waste that we so obligingly adopted with the Kyoto Protocol.

It has been said that I am wont to be verbose. I don’t necessarily want to change that because I am intensely interested in what I write about, however I don’t want to lose you dear reader (borrowed that from Stephen King). So here’s what I’m going to do. I am going to write an new series of shortish blogs on the benefits of FIT for New Zealand in the hope that more people will understand the massive potential benefits to New Zealand and put some pressure on the politicians and energy authorities to do something about it.

I’ve done some reading on the topic and found the paper by Miguel Mendonca of the Birkbeck Institute of Environment, Birkbeck College, University of London particularly helpful. He also wrote the book Feed-in-Tariffs Accelerating the Deployment of Renewable Energy. You can find more information here. He discovered that FIT could work in the UK, that it had many positive benefits above and beyond the basics of a renewable energy source and I plan to discuss some of these from a New Zealand context. I also find it interesting that some people (who perhaps are the ones who wanted Henry Ford to breed faster horses instead of horseless carriages) say there is not enough sunlight in NZ to create an acceptable level of energy. Kiwis who go to UK for their OE’s don’t often come back recounting stories of endless sunny days.

So lets explore what FIT’s and solar power can do for NZ, for our resilience, for our GDP, for our commitment to the environment, for industry, for entrepreneurs and to generally show the world that we are in fact as green as we say we are. There are some amazing benefits to be had along the way.

Please come back and check out what I have learned.

Doesnt look that shabby

Electricity, Earthquakes and other Disasters


So in this series motivated by the Canterbury Earthquakes and particularly Christchurch, I have looked at how prepared we were and what personal lessons we could take away. I asked is it now business as usual, have we gone from maybe it could happen to me, to phew, glad that’s over and we’re good for my lifetime?

 

I don’t think the people of Dannevirke thought so this week when the 5.1 hit there. But then, were they planning on getting prepared before that? Possibly not. Are Wellington people still watching?

I talked about putting together an emergency kit and all the things that Civil Defence recommend you should have both for in the home as well as a kit that you can have ready to throw in the car last minute. This could be useful for so many things, not just earthquakes. In NZ and Australia fires, floods, volcanoes are just a few reasons for people to have to bail in a hurry. If you prepare a getaway kit and never ever need it, that’s great:)

I had a look at community issues and remembering or meeting your neighbors. This is really only a starting point and I want to come back to this in future because once we get over the physical wounds, the things we can see, we are going to have to deal with the psychological outcome. I believe we are going to be dealing with a whole city suffering from PTSS. We are starting to see small examples such as when people are visiting areas of Christchurch that have been closed to them. The tears are good and the visits will help with acknowledgement of the situation and belief in the recovery, but there are still people n0t able to get their cars back let alone go back to their places of work. There are still buildings being torn down.

There are kids who won’t sleep in their own rooms at night. There is an underlying emotional distress of an order that NZ has never had to deal with before. People will be saying I’m OK Jack, but many of them are not. I have some ideas on this, but it will be a separate blog.

I started on the insurance saga, this was before the EQC story and the AMI bailout.  I don’t know about you but I’m getting concerned about banks and insurance companies getting massive bailouts.

They are always talking about the risks they take in consumers, but it seems like perhaps it is the people taking the risks. Should we pay premiums to insurance companies, trusting that they will re-insure and spread their risk and spend a minimum of our premiums on sharing profit amongst employees and shareholder dividends, at least until after they know they have the necessary reserves for major disasters.

Insurance is like playing poker machines or lotto, it is about risk. If a gambler blows their rent money at the casino, does the Government bail them out? Rhetorical question. But when the banks get carried away and over commit themselves to loans that don’t stack up, when insurance companies commit themselves to risk they can’t cover and the government bails them out, it isn’t some nice friendly uncle we’re talking about. You and I are the Government. That money comes from our taxes. It means more pressure on minor things in our community such as education, health, taxes.

So I was wondering, if an insurance company has failed in managing its risk, is it in fact guilty of trading while insolvent? Should the $500 million bailout go to them, or should it go to a liquidator to share amongst the people who bought policies from them in good faith? How much of the bailout goes to the people waiting on insurance payouts? Would you like an answer?

I wrote about the lessons we learned about the telecommunications companies and I have to say I think the telcos did a great job. There are things you can do as well to be able to continue to communicate without power to run or charge your phones. Have you changed anything since then?

Today I wanted to write about electricity, but I’m at 681 words already and there is a fair bit I’d like to stay, so if you’re interested in my thoughts on electricity and emergencies, you could subscribe to my RSS feed or bookmark this page. I think you might find what I have learned interesting.

I also want to write about green power and particularly about solar power schemes, following on from my blog a couple of years ago on Feed-in Tariffs. I’ve learned a little since then and I’m not sure the Government has. It was great to see Bunny McDiarmid from Greenpeace on TV1′s Close Up last night talking about the Petrobas oil exploration and the tension between that and our ‘renewable energy policies’. But I have to wonder where the Green Party is right now. This is a huge opportunity for them in election year to discuss solar power opportunities which are really starting to prove effective in many countries around the world through FIT programs. More on this in one of my next blogs…………….

In the meantime, here’s a video that explains the installation of a PV system on a house in Puget Sound.

How Did the Telco’s Do in the Christchurch Earthquake


So when the quake hit Christchurch, what happened to telecommunications? Naturally in an emergency people need to communicate and there were some interesting situations. In an earlier blog I wrote about your emergency kit. So here are some interesting lessons from Christchurch and any other emergency situation:

Without electricity portable phones don’t work. If your phone requires a transmitter from the junction box to your portable, it’s not going to be transmitting anything. Many people still had copper phone lines even though they didn’t have electricity. Analogue phones still worked and Telecom in my opinion did an awesome job getting people to donate their old phones and shipping them down to Christchurch. I wonder if anyone has taken up the opportunity to start importing old style analogue phones into New Zealand, it must be a great medium term revenue opportunity!

Analogue Phone

With today’s Smartphones, not only did everyone rush to use their mobile to call their loved ones to check if they were ok, they were using mobile data, social networks, tweeting, sending photos and even video, which the media wanted to gobble up, but which clogged the networks for people wanting emergency services. I think the Telco’s did a pretty good job of getting generators to Christchurch and keeping comms up as much as possible, but they have created a bit of a monster that is only going to get worse. In chasing ARPU (Average Revenue Per User) they encourage us to find every possible way to connect on our mobiles, but then what happens if the mobile network gets congested? Obviously they need to work on increasing their emergency capacity as well as normal usage. They are our lifeline. How were they for you?

As I also mentioned in the emergency kit blog, if you’re trying to do all the things I mentioned above, your mobile battery is going to go flat and if you have no electricity that becomes a major problem. New Zealand has been way behind the rest of the world, or perhaps Kiwis haven’t figured it out yet, but we need alternative ways of recharging our mobiles in the absence of an electricity supply. There are lots of products that will allow us to do that. Car kits if we have access to a car. There are kits that allow you to use those conventional batteries you keep in your home and getaway kits (do you?) and also devices that hold enough charge for 2 or 3 charges and then get thrown away. I have one of those for my iPod which I purchased at San Francisco Airport, its brilliant!

Ipod Charger

The Insurance Aftermath of an Earthquake


First there were several people who had inadequate insurance in Christchurch. I have no idea what the situation is in Japan, but I understand that some of the worst hit were apparently poor communities illustrated by the ease with which the  tsunami washed away the houses.

I think the first thing goes back to my previous blogs on preparation lessons, the aftermath and getting your household ready. The Earthquake Commission is there to help after a natural disaster which isn’t covered by normal household insurance. But the scope was huge. They had over 440,000 claims and even in dealing with those, their liability is up to a maximum of $100,000 for dwellings and $20,000 for personal property. Try building a house for $100,000 or replacing even your basic possessions including appliances, furniture, clothing etc for $20,000. Some people will pretty much walk away with nothing.

Now insurance itself is a risk game and they take our premiums on the expectation that for a large number of people they will never have to pay out. Now I haven’t seen the financials for EQC, but I suspect that most of the money has gone into running the organisation over  the years, especially given that after the event John Key says that the government may have to treble the levy in our taxes for future incidents. Does this mean that we are now going to start to pay for what happened, borrowing from the future because the funds weren’t there? Are wee robbing Peter to pay Paul?

We always knew a major disaster looming. Of course we thought it was most likely to happen in Wellington. It hasn’t, which of course doesn’t mean it won’t because Christchurch and Wellington are on different fault lines. But I would have thought with years and years of taxes and no major incidents, EQC would have been flush with funds.

Anyway, back to the present. If you don’t have adequate insurance to cover everything, think again and do what you can, even if money is tight, things could get a whole lot worse. I hate insurance. I was once asked to do a whole lot of psych tests by an insurance company who thought I would be a star life sales person. The idea of selling life policies to my friends was anathema but I loved tests, so I spent a whole day doing the tests and they came back apparently saying I would be hugely successful. I declined despite the offer of a big package. Today I wonder if I should have taken the money, because I better appreciate the importance of insurance. It’s a gamble by both parties, both hoping we will never be in a position to need the cover.

I have life, income protection, health, car, house and contents policies and it eats up a lot of money. So far the insurance companies have enjoyed a lot of meals from my table, but if something major did happen, I feel secure that if my company closed for 6 months because its buildings ceased to exist, if I was injured or ill long term, or if my house washed away in a tsunami, I could rebuild. As the Dean of Christchurch Cathedral said, its the people that matter, the church can be rebuilt.

One concern I had with the aftermath was seeing people throw away their household appliances, carpets, furniture etc and wondering how they would be able to prove what they had lost. The share scale meant that many people had to do that, but it does show the value of having a list of your possessions and also photos. I once had a software app that did that, but never fully used it. Another thing to my be prepared list methinks.

 

Household devastation after the earthquake

So I recommend you grab a digital camera or video camera at least, so that you can go through each room and record your possessions and the state of your property, so that you will have proof in the unlikely event that you could need it. Then store the information somewhere safe. I used to keep my songs in safe deposit on video, with the bank, some people thought I was stupid, but again its just insurance.

Enough for now. I hope I’ve given you some more food for thought. Here’s some fond memories of mine of Christchurch a couple of years ago, with a song I am still writing.