International reinsurers have agreed to provide about $NZ5 billion ($4.6 billion) of cover for New Zealand’s Earthquake Commission (EQC) this financial year.

The premium is $NZ179 million ($163.8 million) for the year to May 31, the commission says.

“The ongoing support of international reinsurers shows they continue to have confidence in the EQC and their support underpins New Zealand’s insurance market,” CEO Sid Miller said.

“Securing reinsurance at rates comparable to recent years is a great vote of confidence in the EQC from reinsurers.”

The commission last year paid about $NZ165 million ($150.3 million) in reinsurance premiums for $NZ4.8 billion ($4.4 billion) of cover, a spokesman told insuranceNEWS.com.au.

The EQC says it has helped reinsurers understand New Zealand risks, using claims information and scientific research it funds on earthquake, volcano, tsunami, landslip and hydrothermal hazards.

Its Minerva earthquake impact modelling system also estimates likely losses from events.

The EQC has an excess of $NZ1.75 billion ($1.6 billion), meaning it mostly pays claims from the National Disaster Fund rather than recovering from the reinsurance program.

“Our reinsurance is to help pay claims when something really big, like the Canterbury earthquake sequence, happens,” Mr Miller said.

The commission expects to spend $NZ10-11 billion ($9.2-10.1 billion) managing and paying claims from Canterbury, with $NZ3.5-4 billion ($3.2-3.7 billion) recovered from reinsurers.