Coronet Peak ski lodges face a sharp hike in insurance premiums following the failure of Queenstown insurance company Western Pacific.
"Unsustainable" premiums charged by the insurance company - which was liquidated in April - were behind the cost increase for insuring the Wakatipu and Otago ski club lodges, the Insurance Council of New Zealand said.
When contacted by the Otago Daily Times, council chief executive Chris Ryan said the clubs' premiums were rising because they had re-insured at "market prices" after Western Pacific went under this year.
"Basically, Western Pacific was not a part of the insurance council and their underpricing meant that a lot of people ... have found it more expensive because they chose the cheapest option, which was completely unsustainable."
Previously insured under Western Pacific, both ski clubs had trouble finding insurers willing to provide coverage, but are now insured by New Zealand Insurance.
The presidents of both clubs say their premiums were now about $9000, a step up from the previous year's $7000.
Wakatipu Ski Club president Richard Hutchens said NZI was the only company prepared to cover the lodge.
He said there was no reason why companies should be reluctant to insure the lodges.
"It's not as though there's been an arsonist up there at work, or any extreme damage up at Mount Hutt from the earthquake ... given that we don't have a bad claim history, there must be something else at work."
A spokesman for Rothbury Insurance Brokers - brokers for the Otago Ski Club - said in the wake of the Christchurch earthquake, insurers were less likely to take on "high-risk" jobs.
"Ski clubs are only occupied for part of the time each year, and so are more at risk of arson or burglary ... so that would put it in a higher risk category," Rothbury business development and sales leader Chris Hughes said.
"Following the Christchurch earthquake, insurance across the board is going to be more expensive, and also insurers are certainly looking at the type of business that they write."
He said that because this would cut the number of insurance companies offering high-risk coverage, those that would provide it could set the market rate at "what they consider a reasonable price."
