Suncorp will move to settle cost allocations for claims arising from the 2010 and 2011 Canterbury earthquakes after reaching an agreement with New Zealand’s Earthquake Commission (EQC).

The agreement – the first between EQC and a private insurer over the Canterbury earthquakes – was formalised last month after discussions with the insurer’s New Zealand arm, which includes Vero Insurance and AA Insurance.

Cost allocations became an issue because of a series of earthquakes that struck the region between the two disasters. The situation resulted in complexities in calculating building and land damage plus the cost of repair between the different earthquake events.

Suncorp New Zealand CEO Jimmy Higgins says the agreement is an example of how the insurer is focused on working collaboratively with EQC and the industry to tackle still-existing issues from the Canterbury disasters.

“Resolving these costs with EQC without resorting to costly and time-consuming court proceedings enables both organisations to move forward with work that will deliver better outcomes for our customers,” Mr Higgins said.