The EQC Minister is refusing to express confidence in Southern Response.
The State Services Commission has opened an inquiry into the insurer for hiring private investigators to track and follow quake claimants. The investigators were taxpayer-funded, and gathered different types of information about quake victims.
EQC Minister Megan Woods says she's focused on the fact-finding mission.
"This isn't a question in confidence or lack of confidence in the board and the staff at Southern Response. This is about getting answers to some of the serious questions that I've raised."
Commissioner Peter Hughes says the material he's seen raises questions about compliance and standards of integrity.
The spying happened over a three-year period and chewed up nearly $180,000 of taxpayer money. It's not known how many people were spied on, but hundreds of people were involved in protests following the Christchurch quakes.
Ms Woods says she's not sure what to feel.
"I don't know. What we need to do is find answers to those questions. That's why the appropriate course of action is for the State Services Commissioner to go in and provide some answers."
Southern Response told Newshub it was "acting in response to an escalating level of threatening and aggressive behaviour and communications from customers towards staff".