After a 7.0 magnitude earthquake severely affected Christchurch – see map here on Friday, 3 September, the centre of the second city of new Zealand remains closed in order to assess the damage and avoid further injuries. Some reports measure the earthquake at 7.1 or 7.2 magnitude.

Damage to the infrastructure and older city centre masonry buildings is extensive and moderately severe particularly in the business sector and residential area Canterbury. The shallow depth of the epicentre at 5kms will undoubtedly have exacerbated the impact.

AIR Worldwide has put out an initial market loss range of between US$2bn to US$4.5bn.

Reports also state that homeowners have also seen damage to their properties. New Zealand Prime Minister John Key said that an estimated 100,000 homes had been damaged – almost half of all homes in Canterbury region. NZ’s Earthquake Commission provides NZ$100,000 insurance to homeowners.

This loss will cause further claims on the Australian reinsurers who write NZ business such as IAG. They have already had the Melbourne and Perth hailstorms to cope with.

Extensive information is available from the NZ IGNS here