The cost of insuring a home in New Zealand has increased by 40% this year and contents cover has risen more than 10%, according to Statistics New Zealand.

The figures include the trebling of the Earthquake Commission (EQC) levy in February. The Reserve Bank of New Zealand (RBNZ) reproduced the figures in its May Financial Stability Report, where the bank notes a further rise in reinsurance costs is likely for the “significant proportion” of the market that renews for July 1.

The report notes that some insurers are exiting the industry and Zurich has stopped offering earthquake cover south of the Waikato district in the North Island.

A couple of minor reinsurers have indicated a desire to exit New Zealand, the report notes.

The bank says some earthquake repair and rebuilding is under way, but volumes have been low due to aftershocks, insurance availability and updates to building codes.

At March 31 insurers had paid out $NZ7.6 billion ($5.9 billion) on earthquake claims, comprising $NZ4.6 billion ($3.6 billion) from private insurers and $NZ3 billion ($2.3 billion) from the EQC.

The RBNZ believes earthquake payouts are one factor behind low credit growth. It estimates about $NZ3 billion has entered the banking system from claims payments and some of this may have been used to reduce mortgages until rebuilding can start.

The bank took over regulation of insurers under the Insurance (Prudential Supervision) Act 2010 and that year identified 149 potential insurers that would need a licence. Another eight companies contacted the bank, including newly created insurers resulting from corporate restructures.

But only 108 companies required a licence by the March 7 deadline this year when the bank had licensed 56 general insurers, 30 life insurers, 11 captives and eight reinsurers.

Another two companies were licensed shortly after the deadline, one was exempted and another completed run-off and had its licence cancelled.

The RBNZ says seven companies which accounted for 0.02% of annual premiums left the market due to the Act.

Another 11 did not apply for a licence because they completed run-off and quit the market, 17 made changes so they did not qualify as insurers, seven restructured – often by transfer to another insurer – and six were found not to qualify as insurers.

Western Pacific Insurance is listed as the only insurance failure.