Lyttelton pressured by tough insurance sector

Compounding disruption caused by a succession of earthquakes, Lyttelton Port of Christchurch has confirmed that is having “significant difficulty” in securing natural disaster insurance cover in the current environment.

With its existing insurance cover terminating at 1600 hrs on July 1, chief executive Peter Davie confirmed that the New Zealand port was “working with its broker on renewal” and would release an update on July 1.

He added that while the majority of cover had been renewed, business interruption and material damage cover was proving hard to find.

Total insurance pay-outs for the September 4, 2010, February 22, 2011, and June 13, 2011 earthquakes have already topped $35m.

The quakes damaged infrastructure and quays, but operations were quickly brought back on line, although at reduced capacity, relatively soon after the quakes hit.