Insurance companies are preparing for an expected deluge of claims over the next few days with the damage bill expected to run into the billions.

The industry also assured customers that their policies would be honoured, even where payouts had occurred for damage caused by the September 4 quake and numerous aftershocks.

Risk modelling company Eqecat said the new quake would probably exceed $1 billion in damages, based on indications immediately after the event. However, determining losses from the new quake would be complicated by the damage left from the original September 4 quake, Eqecat said.

Insurance Council chief executive Chris Ryan said emergency response teams had been put in place to deal with claims when they began to flow in. But insurance firms were still in emergency recovery mode, with a number of staff still missing and severely damaged offices. Source: stuff.co.nz, read more