Part 7: Complaints

Earthquake Commission: Managing the Canterbury Home Repair Programme - follow-up audit.

7.1
In this Part, we describe the improvements that EQC has made to its management of complaints since our 2013 report.

7.2
We did not make a recommendation in our 2013 report about how EQC manages complaints, but we did make some observations.

7.3
The Appendix provides further information on what we observed in 2013 about how EQC manages complaints.

Summary

7.4
Although EQC has made some improvements to how it manages complaints, EQC:

  • cannot separately identify some complaints about the programme;
  • has no formal processes for using complaints information to improve its processes;
  • has had too much focus on closing rather than fully resolving complaints, with too many repeat or multiple complaints; and
  • has not fully integrated complaints systems between EQC and EQR.

Improvements and continued activities

Improvements

7.5
EQC has made some improvements to how it resolves complaints about, and disputes in, the programme since our 2013 report.

7.6
The improvements include:

  • determining the number of claims that could be potentially resolved by the Residential Advisory Service;
  • centralising complaints to one team;
  • "triaging" complaints into three categories;
  • introducing "circuit breaker" meetings; 26
  • commissioning an external review of end-to-end customer interactions – the nature of EQC's customer interactions has been the subject of many complaints; and
  • aligning the EQC and EQR complaints teams.

Continued activities

7.7
Complaints resolution has continued to be a business priority for EQC. 27 It has continued to have face-to-face conversations with customers to resolve disputes.

The Earthquake Commission could manage complaints better

Although EQC has made improvements to how it manages complaints since 2013, it cannot easily identify all complaints about the programme, has no formal processes for using complaints information to improve its processes, has not fully integrated complaints systems between EQC and EQR, and could improve its resolution of complaints.

7.8
EQC does not have formal processes for using complaints information to improve processes. EQC told us that there are informal arrangements to help it manage individual complaints. This includes regular meetings between Fletcher Construction and EQC's complaints teams.

7.9
EQC cannot separate out all complaints about the programme from other complaints. However, it does record the reason for a complaint. This reason can be then used to identify complaints about the quality of repairs and the time frame for repairs within the programme. EQC told us that it receives between 90 and 120 new complaints about the programme each month.

7.10
According to EQC, about a quarter of all the complaints it has received each month in 2015 are complaints about the quality of repairs in the programme (see Figure 14). This is a higher proportion than earlier in the programme in 2014.

Figure 14
Subject of new complaints to the Earthquake Commission, January 2014 to April 2015

Figure 14 Subject of new complaints to the Earthquake Commission, January 2014 to April 2015.

Source: Graph based on information provided by EQC.

7.11
Although the overall number of complaints that EQC has received is declining (see Figure 15), it appears that complaints are becoming more complex and/or EQC is taking longer to resolve complaints. EQC told us that complaints involving litigation are an example of complex complaints.

Figure 15
Age of open complaints, January 2014 to April 2015

Figure 15 Age of open complaints, January 2014 to April 2015 .

Source: Graph based on information provided by EQC.

7.12
EQC's and EQR's complaints processes are not fully integrated. This creates a risk of gaps in responses to complainants, even though there have been improvements in the way the two organisations work together on complaints. EQC and EQR told us that it would not be cost- or time-effective for it to fully integrate their complaints processes.

7.13
Customers are not involved in EQC's "circuit breaker" meetings, but those meetings have been effective in progressing difficult and "stuck" claims.

7.14
In our view, EQC has focused too much on closing complaints. There are too many repeat or multiple complaints.

26: These are meetings to progress claims that have been difficult to progress – the meetings involve crucial decision-makers and specialist staff.

27: We accept that some complaints cannot be fully resolved to a customer's satisfaction because of expectations outside of EQC's mandate.