New Zealand’s Earthquake Commission (EQC) has renewed its $NZ6.2 billion ($5.8 billion) reinsurance program for a total premium of $NZ185.7 million ($172.3 million).

EQC has maintained the same level of cover as last year, after more than doubling the amount of reinsurance it has purchased since the Canterbury earthquakes.

“EQC was pleased with the outcome of its reinsurance placement with pricing in line with our expectations particularly given the evolving COVID-19 situation,” CFO Fraser Gardiner told insuranceNEWS.com.au.

The program, in place from the start of the month and arranged through broker Aon, has an excess of $NZ1.75 billion ($1.64 billion),

CEO Sid Miller says New Zealand is exposed to high levels of natural hazards and EQC and Aon work hard to build confidence in the country and maintain access to reinsurance.

“EQC’s ongoing investment in natural hazards research and modelling to estimate the financial impact of events all help provide reinsurers with a high level of understanding of the risks that they are underwriting,” he said.

To date, the program has only been used for the Canterbury earthquakes, with last week’s update showing reinsurers are now expected to contribute around $NZ4.6 billion ($4.3 billion) of the more than $NZ11 billion ($10.3 billion) that EQC expects to pay out to homeowners when all claims are settled.