Insurers pay out $NZ4.4 billion on Canterbury earthquakes

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6 August 2012

The insurance industry has so far paid $NZ4.4 billion ($3.4 billion) in Christchurch earthquake claims, of which $NZ1.3 billion ($1 billion) relates to residential damage.

The Insurance Council of New Zealand (ICNZ) says half of all commercial claims have been settled, compared with 21% of residential claims, which are complicated by the involvement of the Earthquake Commission (EQC).

The state-owned EQC insures land and pays the first $NZ100,000 ($77,200) of damage to residential properties, then passes the claim onto the owners’ private insurer.

ICNZ released the figures following growing criticism of private insurers for not settling claims earlier.

CEO Chris Ryan says the figures indicate insurers are making steady progress.

“While the Insurance Council acknowledges the frustration of Cantabrians, insurers and brokers are also frustrated with the huge task of assessing and completing claims and want to see them completed as soon as possible,” he said.

He says the insurers’ CEOs meet weekly with the EQC, Canterbury Earthquake Recovery Authority, Earthquake Recovery Minister Gerry Brownlee and government departments to try to speed up the recovery.

Private insurers expect to pay around $NZ15 billion ($11.6 billion) in earthquake claims.