Insurance impact of the Canterbury earthquakes on NZ

Insurance impact of the Canterbury earthquakes on New Zealand's international accounts

Media Advisory

This is to advise you that Statistics New Zealand has released it's best estimate for the September quarter of the impact on the Balance of Payments (BOP) statistics of reinsurance claims arising from the Canterbury earthquakes. The estimate is of a $1.7 billion impact, which will affect the current account, and the international investment position (IIP).

Please click below
http://www.stats.govt.nz/browse_for_stats/economic_indicators/balance_of_payments/impact-canterbury-earthquake-on-international-accounts.aspx to link to the paper that presents this best estimate and explains how cross-border reinsurance transactions are treated in the Balance of Payments (BOP) statistics. The $1.7 billion estimate is sourced from the insurance industry, and is the latest available estimate of the total lodged and expected reinsurance claims over overseas reinsurers arising from the Canterbury earthquakes. The figure is an estimate only and the continuing insurance process means the figure will be revised as more time elapses. The estimate covers claims received and settled, claims received and not settled, and the industry's estimates of claims they still expect to receive.

This is not the estimate of the total insurance cost to New Zealand of the Canterbury earthquakes, but of the total reinsurance claims lodged and expected to be lodged against overseas reinsurers by New Zealand insurers having reinsured themselves with overseas companies for an event like this.

This estimate is part of the September quarter Balance of Payments, due for release on 22 December. It is being released early given the importance of the market being informed due to the size of the figure and it's impact on the Balance of Payments.

Please read the paper for more information.

ENDS

insuranceimpactcanterburyearthquakeinternationalaccounts.pdf

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