Big insurer back in Christchurch, as quakes lessen

8:07 pm on 20 September 2012

The largest provider of insurance in Christchurch, IAG, will offer new insurance policies in the city from the beginning of next month, as quake activity reduces.

The announcement follows one from Westpac and Lumley Insurance last week, in which new insurance was offered on new homes when a mortgage was taken out with the bank.

IAG - which owns State, AMI and NZI - says it will offer new insurance on a case by case basis to new and existing residential customers and to existing commercial customers.

IAG's executive general manager Canterbury recovery, Dean MacGregor, says the reduction of seismic activity in Canterbury has given the insurer more confidence.

"That's the driver for this is that our confidence level has increased, and then the scientific modelling is that the after shock sequence is starting to die away, and that's obviously evidenced by the fact that we haven't had any major aftershocks now for some time."

The cover will not be offered to those in areas with a high chance of liquefaction in any future earthquakes, labelled as technical category three, or TC3.

Those living in homes built prior to 1935 are also not included.