The Reserve Bank of New Zealand has estimated the cost of property-related insurance claims from the Canterbury earthquakes at $NZ30 billion ($23 billion) in a detailed calculation that includes insurers’ costs.

The central bank put the cost of the rebuild at $NZ20 billion ($15 billion) in September, but says the higher figure includes insurers’ claims-handling expenses, business interruption, temporary accommodation and other non-rebuild costs.

It also includes inflation and adjustment for insured property damage that is not repaired or rebuilt.

The bank notes in its November financial stability report that it will be years before the final cost is known, but says its latest estimate reflects more detailed assessments by insurers.

The report comes as Earthquake Commission (EQC) payments for home and contents damage top $NZ2.2 billion ($1.7 billion).

The report notes that without the support of reinsurers, more private insurers would be in financial difficulty or there would be reduced insurance coverage.

It calculates that private insurers’ reinsurers will cover 49% of property-related insurance claims, the EQC’s reinsurers another 17%, private insurers 5%, the EQC Fund 25%, EQC government support 2% and government support of AMI 2%.

Despite the high level of reinsurance, the bank says insurers’ capital buffers have fallen due to losses and the higher cost of reinsurance.

“For those insurers operating in New Zealand as subsidiaries of foreign-owned entities, parental support has been evident,” the report says. “Several insurers have had additional capital injected this year.

“With these injections and government support of AMI, the sector generally appears well placed to meet claims.”

The bank says although new cover is harder to get – most businesses and households in Canterbury have been unable to change insurers – it believes insurers and reinsurers will eventually reassess their risks and opportunities in New Zealand and a more active market will return in Canterbury.