Radio New Zealand - Te Reo Irirangi o Aotearoa

Insurers expect quake exposure to be limited

Updated at 12:35 pm on 6 September 2010

Three of the largest insurers say it is too early to estimate the cost of claims from the Canterbury earthquake, but their financial exposure will be limited.

Insurance Australia Group, which owns State Insurance and NZI, says its answered more than 2000 calls about the earthquake.

Managing director Michael Wilkins says it is too early to determine the cost of damage, but he expects it to be significant.

Mr Wilkins says the cost of the claims will by covered by the company's own insurance arrangements.

Tower says insurance claims arising from the Christchurch earthquake will cost it $5 million.

Tower says it is also re-insured, so its total losses will be capped at $5 million. The after-tax effect is expected to be around $3.5 million.

Meanwhile, Suncorp, whose brands include Vero and AA Insurance, says it is also covered by its own insurance arrangements.

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