Christchurch City Council is likely to get NZ’s largest-ever insurance payout from the country’s local government insurer, Civic Assurance.

Civic is owned by 67 local governments in NZ and insures them for above-ground damage.

It also administers a mutual fund that covers 59 local authorities for infrastructure such as water pipes.

Civic GM Finance Roger Gyles says a “very preliminary” estimate of above-ground damage from the second quake is $NZ200 million ($145 million), but assessors have only just been able to get into Christchurch to start work.

Christchurch City Council is the country’s second-largest landlord, owing 2600 housing units.

Mr Gyles told insuranceNEWS.com.au it’s still too early to assess the damage to the water and sewerage network.

Following the September 4 earthquake, Civic estimated a $NZ150 million ($109 million) claim from Christchurch City Council – at that time the country’s largest insurance claim – and a $NS25 million ($18 million) claim from the adjoining Waimakariri District Council.

He says more than 90% of claims from the first quake – now known in NZ as Q1 – have been assessed, and this gives assessors a starting point in calculating how much damage Q2 has inflicted. Very little of the Q1 repair work had been completed prior to Q2.

Civic’s reinsurance will cover all but $NZ5 million ($3.6 million) of the cost. The company has 13 reinsurers in catastrophe cover plus unlimited reinstatements.

Mr Gyles says the cost of reinsurance will definitely rise. At present reinsurers “don’t want anything to do with NZ”.

Swiss Re estimates its claims cost from the earthquake will be around $US800 million ($790 million) pre-tax and net of retrocession.

CEO Stefan Lippe says the insurer’s preliminary estimates suggest the total insured loss for the insurance industry from Q2 will be in the range of $US6 billion-$US12 billion ($5.9 billion-$11.8 billion), “making this a significant event on a worldwide basis”.