The Government's optimistic a change to earthquake insurance claims will make life easier for policy holders.

A deal has been struck between the EQC and private insurers that will see the private companies act as EQC's agents and handle home and contents claims for earthquake damage from their own customers.

EQC Minister Gerry Brownlee said property assessments will now be in the hands, in the first instance, of private insurers with EQC to take a cash position as a result of that work.

He said there remains potential for tension around the $100,000 EQC cap but Mr Brownlee hopes things will be a lot more straight forward for people as a result of the change.

Brownlee said the intention is to reduce the double handling of claims and to speed up settlements for quake affected customers.

"It doesn't remove any of the obligations on EQC. It should just short circuit that the cross over point between the $100,00 cover and where the private insurer takes over."