New Zealand Quake Heralds Increasing CAT Losses

The Feb. 22 earthquake that struck near Christchurch, New Zealand was a reminder of the potential for large insurance losses in far-flung regions at a time when many North American and European insurers are diversifying their books of business. Though measuring 6.1 on the Mercalli scale, the quake was technically an aftershock of the 7.1 Canterbury quake of Sept. 4, 2010. Despite its lower rating, the Christchurch quake’s losses have already far surpassed those of the Canterbury event.