Brownlee to brief reinsurers in Europe

10:05 pm on 31 August 2011

Earthquake Recovery Minister Gerry Brownlee will travel to Europe next week to try to reassure reinsurers about the risk of providing insurance for the Canterbury region.

The Earthquake Commission has more than doubled its initial estimates of how much it will have to pay out for the earthquakes, to $7 billion.

Mr Brownlee says insurers are naturally going to be hesitant about continuing to cover houses where repairs have been made and are subsequently damaged in further earthquakes.

He told Morning Report that he will explain what the Government is doing to reduce risk for insurance companies in Canterbury.

Much has been learned about Canterbury, including the seismicity of the region, and houses will not be built on land that is not seismically sound, he says.