Australian summer catastrophe claims hit $1.6bn, as ICA declares another significant event

The Insurance Council of Australia (ICA) has declared another “significant event” for last weekend’s severe storms that were focused on New South Wales, while will add to a summer catastrophe insured loss tally that is now at AU $1.6 billion.

Last weekend’s severe storm caused heavy rainfall, damaging winds and flash flooding, with the most severe impacts seen in the Hawkesbury-Nepean and Illawarra regions of New South Wales.

Insurers have already received 11,527 claims from that latest severe storm event, largely from damage to buildings and contents as a result of wind and heavy rain that resulted in gutters overflowing and flash flooding to occur.

Insurer IAG said earlier this week that as of Monday 8th April 2024, it had received 3,169 claims from policies across its brands.

Over 80% of IAG’s claims related to property insurance damage, the insurer said.

Insurer Suncorp also provided an early estimate, saying it has received close to 2,700 claims from the intense rain and storms last week, with more than 2,100 of those for residential policies.

The ICA also said that summer catastrophe claims in Australia are at AU $1.6 billion, with the insurance market cost of the Christmas Storms now exceeding $1.1 billion.

Recently, PERILS AG had said that its estimate of insurance and reinsurance market losses from the Christmas Storms is now AU $1.547 billion, but that data providers view of the hours clause for this event likely differs somewhat, so may be capturing some claims the ICA allocates to smaller events.

The ICA also pegs the insured loss from ex-TC Jasper at $296 million from nearly 10,000 claims, from the Australian Christmas Storms at $1.1 billion from nearly 95,000 claims and the Valentines’ Day storms at $162 million from nearly 25,000 claims.

ICA CEO Andrew Hall commented, “The summer of 2023-24 saw a number of extreme weather events across the east coast, with two declared catastrophes including a cyclone and severe storms and flooding in Queensland.

“As we move into autumn the impact of extreme weather continues with the storm that largely impacted New South Wales last Friday and Saturday.

“Insurers are already on the ground in impacted areas assisting customers and responding to claims and will be at Recovery Centres in the Illawarra and Hawksbury-Nepean over the next three days.”