Insured loss estimate for Australian storms & TC Jasper pegged at $743m

The insurance industry loss estimate from the severe storms that affected eastern Australia through the Christmas and New Year period, as well as from the remnants of tropical cyclone Jasper, has been initially estimated at $743 million, by the Insurance Council.

When we last covered these recent severe weather events, the Insurance Council of Australia (ICA) had said reported claims from the storms reached 72,410 around a week ago.

The claims figure has now risen to 79,033, the majority being related to the Christmas and New Year storms that impacted regions of Queensland, New South Wales and Victoria from 23 December to 3 January, at 70,965 claims.

The number of claims caused by severe weather & flooding in North Queensland after tropical cyclone Jasper have now risen to 8,068, the ICA said today.

The Jasper related industry loss is estimated at $202 million, split as $17 million due to contents insurance claims, $139 million from property claims and $15 million from motor.

With the severe weather from Christmas and New Year storms, the ICA estimates a total insured loss of $541 million, with $60 million from contents claims, $332 million from property insurance claims and another $91 million from motor policies.

CA CEO Andrew Hall said, “Insurers are closely monitoring the situation in Queensland as it is clear we are still moving through the summer season of tropical weather with another potential cyclone forming in the Coral Sea.

“These two severe weather events have had a significant impact on many, and insurers are committed to supporting their customers through this challenging time.

“We encourage anyone affected by Cyclone Jasper and the flooding or the Christmas and New Year storms to contact their insurer as soon as possible to lodge a claim.”

As a reminder, Suncorp had reported nearly 28,000 total insurance claims from the recent severe weather, while IAG had reported approximately 17,000 insurance claims from these storms and weather events by January 4th.

Suncorp highlighted its reinsurance protection when it reported its claims at the start of this month, but it remains uncertain whether any excess-of-loss layers could attach.

Lisa Harrison, CEO Consumer Insurance, Suncorp Group commented on approaching Cyclone Kirrily today, saying, “As we saw with Jasper, the severity of the system was realised after the event due to the heavy rainfall and flooding which caused significant damage, and it’s possible this could also be the case with Cyclone Kirrily.

“We are closely monitoring the situation and have teams right across the country on standby to respond. Once it is safe to do so we will be on the ground to support our customers.”