New Wellington Fault Unlikely to Impact on Premiums

media release

8 October 2014

New Wellington Fault Unlikely to Impact on Insurance Premiums

The discovery of a new fault in Wellington is unlikely to have any impact on insurance premiums for homeowners and businesses, according to the Insurance Council of New Zealand.

NIWA today announced the discovery of a new active fault in Wellington Harbour after analysing data from a recent marine survey. The Aotea Fault is part of a series of several dozen geological faults in the Wellington region, many of which are considered capable of generating a strong earthquake.

However, scientists say the fault does not increase Wellington’s earthquake risk in any appreciable way and that any ground-shaking the Aotea fault could produce is already considered in Wellington’s seismic hazard calculations and accounted for in the building code.

“The scientific reassurances that the Aotea fault doesn’t dramatically increase Wellington’s earthquake risk appreciably will mean it’s unlikely there will be any impact on insurance premiums,” says ICNZ Chief Executive Tim Grafton.

“This type of research is welcomed as it gives the territorial authorities a better understanding for planning and construction of infrastructure across the fault,” says Mr Grafton.

ENDS

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