Lack of insurance 'holding back' recovery

6:39 am on 14 September 2011

Business leaders in Christchurch say insurance is the key issue holding back the city's economic recovery.

One Christchurch property developer says he is pressing ahead with a building project, despite having no guarantee of insurance at the end.

Richard Diver says his four-storey project on Victoria Street has insurance while it is under construction not once it has been completed.

"I think everyone is in the exact same boat - there is just nothing that can happen until the insurance companies come back on board."

He says he has his funding and tenants lined up and it's nice to be building the first thing going up in Christchurch after the quake.

An insurer at a seminar held on the issue on Tuesday, Vero Insurance, says it is still covering most of its existing Christchurch clients.

The Canterbury Employers Chamber of Commerce says it believes insurers do want to help clients rebuild, but are worried about incurring further costs for the industry.

It says businesses can work in areas where land has been certified as safe and where reconstruction will not be compromised by aftershocks.