An examination into who paid the costs of the Canterbury earthquake

Abstract

Insured losses in the Canterbury earthquakes have been estimated at over $23bn. The size of these losses pushed the NZ insurance industry and its members to their limits following the quakes, though the losses will ultimately be borne by NZ policy holders in the long term. Insurance industry reform was underway before the quakes but they provided a strong motivator for regulatory change to add further stability. NZ has depleted the EQC earthquake fund and must therefore rely on a strengthened insurance industry to guard against natural disasters in the future.