The Natural Hazards Commission Toka Tū Ake (NHC) has issued updated guidance to help Canterbury residents understand the requirements for reopening earthquake-related insurance claims, as questions continue more than a decade after the region’s seismic events.
According to the commission, while claims are still being accepted, time has introduced new complexities.
In addition to assessing damage on a case-by-case basis, NHC must now consider issues such as the origin of the damage and the expiry of legal timeframes for reopening claims.
Tina Mitchell, chief executive of NHC, said the changes are designed to provide greater transparency for homeowners attempting to revisit past claims.
“Given the length of time since the Canterbury earthquakes, it can be more difficult to verify what is earthquake damage, compared to other causes, like wear and tear,” she said. “We have updated our guidance to provide more clarity for people looking to reopen their Canterbury earthquake claim.”
The new information outlined what evidence homeowners need to provide to demonstrate that the damage was caused by the 2010–2011 earthquake events. It also includes information on the applicable legal time limits that may affect whether a claim can be reconsidered.
Mitchell reaffirmed the agency’s commitment to addressing ongoing concerns in the region.
“I want to assure Canterbury homeowners that we remain committed to the earthquake recovery and will continue to consider every query about earthquake-related damage on its individual merits,” she said.
In a separate development, the Reserve Bank of New Zealand (RBNZ) has published findings from its 2024 General Insurance Industry Stress Test, which assessed how insurers would manage a major natural catastrophe combined with cyber-related risks.
The natural catastrophe exercise was based on a theoretical magnitude 8.7 earthquake along the Hikurangi Subduction Zone, projecting insured losses of around $62 billion from participating companies, and as much as $100 billion when scaled to the full insurance market. The scenario also assumed a significant economic contraction and market volatility.
Although insurers were found to be capable of fulfilling their policyholder obligations, the scale of the simulated disaster would require them to secure substantial external capital, primarily from foreign parent entities, and draw on global reinsurance resources to remain solvent and operational.
Kerry Watt, director of financial stability assessment and strategy at RBNZ, said that while insurers could meet claim obligations, broader challenges would emerge.
“This is a sign of the resilience that’s been built into the system since the Canterbury earthquakes, including strengthening of solvency requirements, increased coverage by the Natural Hazards Commission, and improved loss estimation modelling,” he said.
The report also flagged fiscal risks for the New Zealand government, including liabilities tied to the NHC’s obligations, the repair of public assets, and social assistance programs. It emphasised the need for public financial resilience to support recovery in such events.
Insights from the test will feed into RBNZ’s review of capital adequacy rules and wider disaster response planning across the financial system.
