The Earthquake Commission has secured another year of reinsurance cover as it deals with a $6 billion shortfall in its fund, caused by the earthquakes in Canterbury.
But the coverage came with a 50% price increase.
Re-insurance cover contracts are critical to the commission and private insurers and the cost of reinsurance is a major issue.
Chief executive Ian Simpson confirmed to Nine to Noon on Thursday that the agency has secured another year of reinsurance cover.
He says all the Canterbury earthquakes would cost $12.5 billion in total.
Mr Simpson said the fund totalled about $6 billion before the earthquakes, with the shortfall being covered mainly by insurance.
The taxpayer will also contribute about $1.5 billion.