The earthquake that struck New Zealand this week could cost the insurance industry as much as NZ$5.3 billion ($3.7 billion), according to catastrophe modeler AIR Worldwide.

The insured losses will be at least NZ$1.15 billion, the unit of Verisk Analytics Inc. said in a statement on its website. Most damage to residences will be covered by the Earthquake Commission, a government-owned carrier backed by reinsurers, according to AIR.

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2,600 aftershocks

New Zealand was hit early Monday with a 7.8-magnitude earthquake that caused more than 80,000 landslides and 2,600 aftershocks, according to AIR. The quake shattered glass, collapsed chimneys and left dozens of buildings either unsafe for use or facing other restrictions. It raised the seabed by as much as two meters (6.6 feet) in places, which can disrupt the fishing industry.

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