October 21, 2017

Christchurch quake claims estimate up to US$12b

Christchurch quake financial tremors being felt in Zurich.

International reinsurance giant, Swiss Re announced today that estimates of it’s claims costs from the earthquake in Christchurch, New Zealand on 22 February 2011 to be approximately US$800m.

They estimate the total insured claims for the insurance sector for the earthquake in New Zealand will be between US$6 billion and US$12 billion.

The magnitude 6.3 earthquake which struck the Canterbury region of the South Island of New Zealand on 22 February 2011 caused fatalities and widespread damage, particularly in the city of Christchurch.

While smaller in magnitude than the September 2010 earthquake, this event was at a shallower depth and significantly closer to the central business district of Christchurch, New Zealand’s second largest city.

“The latest earthquake in New Zealand took a heavy toll in terms of human fatalities, despite the advanced risk prevention measures that are in place in New Zealand,” says Stefan Lippe, Chief Executive Officer of Swiss Re.

“The purpose of insurance and reinsurance is to help individuals and communities cope with the devastating impact of such events. Our role is to enable the people of Christchurch to recover swiftly from this catastrophe.”

Newswarped is trying very hard not to be cynical about insurance companies making hefty profits.