New Zealand private insurers will handle claims for policyholders following natural disasters under a partnership model agreed with the Earthquake Commission (EQC) to simplify and speed the process.

AA Insurance, Chubb, FMG, Ando (Hollard), IAG, MAS, Vero and Tower have worked with EQC on the model, which will come into effect from the second quarter next year.

The arrangement builds on a trial following the Kaikoura earthquake and means anyone with home insurance whose property is damaged in a disaster will only need to lodge one claim through their private provider.

“This will ensure a more effective and efficient response, delivering simplicity and certainty for customers during a very stressful time,” Insurance Council of New Zealand (ICNZ) CEO Tim Grafton said.

The model was also used more recently in responding to the Northland floods in August.

EQC covers damage from disasters up to a $NZ150,000 cap plus goods and services tax for building damage, with private insurance then topping up to higher amounts.

After the Canterbury earthquakes the recovery process was complicated by customers often needing to make separate claims to EQC and private insurers.

“We know that EQC cannot respond to a large natural hazard event alone, and this new partnership will streamline the insurance process and ensure we make best use of existing sector capability and expertise to meet the needs of New Zealanders,” EQC CEO Sid Miller said.

“Once set up it will double our capacity to manage claims from a natural disaster.”

Mr Miller says the arrangement is supported by robust contractual and governance/assurance frameworks.

"The Kaikoura model was set up under urgency within four weeks," he told insuranceNEWS.com.au. "The new agreement with the private insurers is based on the same partnership principles, but builds on the improvements we made in the customer experience."