Insurance companies in New Zealand are set to reclaim $649 million in reinsurance for the November 14 magnitude 7.8 earthquakes in Kaikoura: a figure that is expected to rise.
According to Statistics New Zealand, insurers have provisionally estimated their reinsurance recoveries at $649 million, which helped push the country’s capital account balance to $683 million for the December 2016 quarter, Artemis reported.
The Insurance Council of New Zealand had reported that commercial insurance claims due to the Kaikoura earthquakes amounted to over $900 million, but that figure is expected to have soared since then.
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Meanwhile, the re/insurance market continues to expect Kaikoura claims to reach as high as $5 billion: a significant portion of which they believe would be from business interruption claims.
It may take some months before reinsurers could determine their total exposure to Kaikoura, the report said.
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