Flood claims keep climbing as cost hits $2.5 billion
Flood claims keep climbing as cost hits $2.5 billion
14 April 2022
The Insurance Council of Australia (ICA) now estimates the cost of recent east coast flooding at $2.49 billion and says the number of claims lodged, currently 177,630, will continue to rise.
“The scale of this event is large, and the population of the affected areas means the human impact is significant,” ICA says in a statement.
“Claims numbers are much higher than at the same point during other recent flood events and we expect claims to continue to increase as more people return to their properties.”
ICA has previously said the claims composition was 79% property, 15% motor and 6% commercial/other.
The severe weather system in March brought so much rain to the north-east of Australia that Brisbane received 80% of its annual rainfall in just three day, hundreds of people had to be evacuated in NSW’s Lismore and 22 died.
The claims update comes as the Bureau of Meteorology says the current 2021–22 La Niña event is continuing despite some weakening over recent weeks.
Climate metrics continue to indicate a return to neutral in autumn or early winter, but the chance of above-average rainfall across large parts of eastern Australia during autumn remains heightened.
“Atmospheric and most oceanic indicators persist at La Niña levels,” the bureau says. “Sea surface temperatures remain cooler than average along the Equator. Compared to two weeks ago, surface waters have cooled slightly in the eastern half of the equatorial Pacific. Trade winds remain stronger than average in the western Pacific. Other atmospheric indicators also remain at La Niña levels.”
IAG, Suncorp and QBE have said their claims impact will be limited because of reinsurance programs, while ICA has called for $2 billion to be spent over five years on resilience funding which it says would save governments and households at least $19 billion long-term.
