Boston-based AIR Worldwide said Thursday that the estimated insured losses from the earthquake that struck New Zealand’s South Island near Hanmer Springs on Nov. 14 will be between 1.15 billion New Zealand dollars ($762 million) and NZ$5.3 billion ($3.5 billion).

The 7.8 magnitude earthquake was near the small tourist town of Kaikoura, half way between Christchurch and the capital, Wellington. Kaikoura was cut off by landslides and lost its power, water supply, and sewage system.

AIR Worldwide said that more than 134 buildings have been inspected in Kaikoura resulting in 13 red tags denoting unsafe for use as well as 39 yellow tags denoting restricted use.

Christchurch appears to have experienced far less damage than it did in the devastating earthquakes that struck the area in late 2010 and early 2011, but has not escaped unscathed. Damage in the Canterbury area, which includes Christchurch, may account for up to 30% of the total losses.

AIR said much of the region affected by the quake is rural and sparsely populated, but there was significant damage reported in Wellington on the southern tip of North Island that accounted for at least half of the losses.

Sydney-based Insurance Australia Group Ltd. said Friday that it expected to incur 200 million Australian dollars in losses ($147.5 million) from the combined impact of a recent trans-Tasman storm and the New Zealand earthquake. 

Rating agency A.M. Best Co. said in a report released on Friday that it “believes that claims from the earthquakes are likely to undermine the underwriting performance of some large insurers, especially those with high-risk accumulation in the upper South Island and the lower North Island.”

The report said that since the Canterbury Earthquakes in 2010-11, most general insurers in New Zealand have already moved to “sum insured” policies for home insurance, rather than “full replacement” covers. Also, deductibles have generally increased for commercial insurance in recent years.

Auckland, New Zealand-based Tower Ltd. said it is assessing the impact of the earthquake. Tower said that under its reinsurance program the company will see maximum losses of NZ$7.2 million ($5 million) after tax.