Kiwi quake claims may go up to $8 bn

The insurance industry faces damage claims of between $3.5 billion and $8 billion from Tuesday’s devastating earthquake around Christchurch, New Zealand, catastrophe modelling firm Air Worldwide said.

The insurance industry faces damage claims of between $3.5 billion and $8 billion from Tuesday’s devastating earthquake around Christchurch, New Zealand, catastrophe modelling firm Air Worldwide said.

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“The quake caused extensive damage in the city center and was the second major quake to strike the city in six months,” Air Worldwide said.

“Damage assessments are only just beginning after the initial focus on search and rescue,” said the firm, which uses computer models to generate fast loss estimates for insurers on events like earthquakes or hurricanes. “Aftershocks, of which there have been several, remain a concern.”

This week’s earthquake makes insurance adjusters’ task even more complex as they will need to distinguish whether the damage is from the previous earthquake or a new claim.