The Insurance Council has lodged a judicial review in the Christchurch High Court against higher earthquake strengthening required by the city's council.
In late 2010 the Christchurch City Council adopted a new policy with the “aim” of requiring new or upgraded buildings to achieve 67% of new building standard.
But the Insurance Council argues 67% is unlawful and is holding up repairs and rebuilds.
The judicial review comes in the same week the government says lifting the new building standard beyond 33% is unlikely because it would bankrupt the country.
The Christchurch council is currently under siege in the wake of the royal commission report which blamed it for failures relating to the CTV building collapse in February 2011.
Last week, mayor Bob Parker and fellow councillors rejected their own staff report to reopen some of the 161 public buildings closed in recent months because of seismic fears.