Liquidators of boutique Queenstown-based Western Pacific Insurance have brought in extra engineers to assist with Canterbury earthquake claims, three and a-half years on from the liquidation.
Liquidator Richard Simpson, of Grant Thornton, said he expected to receive an estimated $33.9 million from Western Pacific's reinsurers, for claims arising from the two main Canterbury earthquakes.
While there stands an estimated $49.1 million in claims, with a recovery expected from the reinsurers of $33.91 million, there will be an estimated shortfall of $16.9 million.
''We expect there will be a shortfall of funds available for claims, and also expect the quantum of claims may increase as assessment of same is completed,'' Mr Simpson said in the latest report.
Grant Thornton was appointed in April 2011 in the wake of Western's collapse after being unable to meet its obligations to pay out about $6 million in Christchurch earthquake claims.
Western's operators, Queenstown-based Graham Smolenski and his Australian brother-in-law Jeff McNally, once held 7000 policies worldwide, amounting to $10 billion in insurance cover.
Mr Simpson said so far there had been 19 claims assessed from both quakes, valued at $6.7 million, another 121 claims were with the loss adjusters, estimated at $39.9 million, while a further 55 claims had not yet been assigned to a loss adjuster, estimated to be worth $2.5 million.
Mr Simpson said due to the lack of engineers available, progress had been slower than hoped, but Grant Thornton had engaged two additional engineering firms to help with the loss-adjustment process.
''Our current estimate for completion of loss assessment of the earthquake claims is at least 12 months,'' he said.
While there may be an estimated shortfall of $16.9 million for policy holders, separately, unsecured creditors have lost about $27.6 million - a total shortfall of more than $44 million.
