The financial consequences of Canterbury's catastrophic earthquakes look set to continue for years.
The Earthquake Commission is set to run out of money in two years and will have to bill the Government for over $1 billion.
In addition, there will be far less money available for the next catastrophic earthquake than there was for Canterbury.
The commission has taken out extensive reinsurance but will have no money left in the National Disaster Fund, which dates back to 1945.
This problem comes as the private insurance industry scales back its level of protection and charges higher prices for insurance protection for buildings.