The New Zealand arm of Hong Kong insurer China Taiping will not write new business in the Canterbury region or Wellington, long considered a high earthquake risk.

In a letter to brokers last week COO Peter Lam said underwriting limits have been tightened “at the request of our reinsurers”.

The maximum sum insured on any risk will be limited to $NZ6 million ($4.65 million).

The company will no longer insure pre-1950 buildings, and buildings less than 30 years old must be supported by a valuation report for replacement value.

Buildings over 30 years old will be insured on an indemnity value basis only and must have a valuation report.