NEW ZEALAND: Deficit looms as insurance cost doubles

Canterbury University in New Zealand's insurance premiums have more than doubled since the February earthquake and it now expects to operate with a $15 million (US$15.3 million) deficit next year. The deficit has jumped from the $10.2 million forecast less than two months ago after additional advertising and property costs, and the rise in insurance premiums, writes Tina Law for The Press.

New Zealand tertiary institutions are required to operate with a 3% surplus. Canterbury University is facing unprecedented challenges after the quake and is forecasting a cumulative drop in full-time equivalent students of 19,400 from this year to 2019 and a reduction in revenue over that time of $346 million.

It has asked the government for at least another $150 million to help it deal with the fallout from the quake, but is not expecting an answer until the first quarter of next year.
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