Foreign insurers are beginning to react to the steep rate increases in New Zealand following the Christchurch earthquakes and new perceptions of the country’s risks.

Alan Rixon, MD of non-marine risk at London-based broker Ropner Insurance Services, last week visited government, legal and industry executives in New Zealand to discuss opportunities to provide cover to the Canterbury area.

A lack of capacity in the domestic market is slowing the recovery in Christchurch, as people wanting to rebuild can’t obtain cover.

Ropner specialises in marine and reinsurance as well as other risks. Mr Rixon was travelling after the meetings and could not be reached for comment.

Industry insiders told insuranceNEWS.com.au that a hardening in the New Zealand markets could attract some much-needed overseas interest.

“The New Zealand market has always been too soft and it has not been economic [for foreign companies], but now rates are going up and we are seeing deductibles increasing significantly, they can see the market might be worth a look at,” one source said.

The local industry has been telling New Zealanders that property cover has been too cheap and too easy to obtain, so insurance buyers are prepared for steep premium increases.