Insurer Tower NZ has forecast “extensive” insured losses following last week’s earthquake and tsunami in the Pacific Islands.

An 8-magnitude earthquake centred off Samoa last Wednesday triggered a tsunami sending a 7-metre wall of water across low-lying communities in Samoa, American Samoa and parts of Tonga.

In addition to widespread damage, it’s estimated that more than 166 people died in the disaster, including at least five Australians and seven New Zealanders.

Tower controls about 51% of the Samoan market through a 71% stake in National Pacific Insurance.

“It’s a bad one,” Tower MD Rob Flannagan told insuranceNEWS.com.au. “While it’s early days it’s pretty extensive, and while I don’t know the full extent of the claims it will run to millions of dollars.”

He says an immediate priority has been the welfare of 10 staff in Samoa and 11 staff in American Samoa, all of whom survived.

“We also have staff in our NZ offices with immediate families in Samoa and there’s obviously concern there,” he said.

Tower has flown in additional staff from NZ to assist local staff “and help handle things, as there is a lot of stress and emotion”.

The insurer’s reinsurance arrangements are well placed to absorb losses in the Pacific, Mr Flannagan said.

An Australian broker with some business in the region says insurance penetration in the region is typically low.

“We’ve had no reporting of any claims at all,” said the broker, who declined to be named. “Unfortunately people don’t tend to buy a lot of life cover in the region, either.”

A Swiss Re spokesman says it’s too early to estimate total insured losses from the disaster.