Private insurers have paid out almost $NZ14 billion ($13.4 billion) settling Canterbury earthquake claims, the Insurance Council of New Zealand (ICNZ) says.

It estimates 83% of commercial claims, 84% of “out-of-scope” claims and 93% of “over-cap” claims are now settled.

CEO Tim Grafton says the figures are in line with expectations.

“We’ve always said we would expect to have the vast majority of claims settled by the end of 2016, and we’re on track to achieve that,” he told insuranceNEWS.com.au.

Mr Grafton expects a small number of claims will “flip over into 2017” due to litigation and remaining over-cap issues.

At the end of December $NZ8.17 billion ($7.82 billion) had been paid to settle commercial claims and $NZ5.69 billion ($5.45 billion) for domestic claims following the quakes in 2010 and 2011. 

“This is a significant contribution towards the estimated $NZ40 billion ($38.31 billion) economic loss suffered in Canterbury,” Mr Grafton said.

A quarterly survey of insurers by the Canterbury Earthquake Recovery Authority shows 53,698 out-of-scope claims have been settled.

These include claims for damaged pathways, driveways and fences. 

Some 57% (13,566) of claims above the Earthquake Commission’s (EQC) payout cap of $NZ100,000 ($95,800) have been settled. A further 36% (8594) of over-cap claims have been agreed and are under construction, in the rebuild queue or are about to be settled in cash.

While private insurers settled 4447 over-cap claims last year, the  EQC transferred a further 1963 to private insurers. The number of over-cap claims grew to 23,925 at year’s end from 23,181 at the end of September last year. 

Mr Grafton says he understands “the frustration of customers whose claims have just reached or are yet to get to their private insurer”.

“While there will be more over-cap settlements coming insurers’ way this year… we’re confident the majority of over-cap claims will be fully settled by the end of the 2016 target,” he said.