Perils maintains billion-dollar loss estimate for October SA storms
Perils maintains billion-dollar loss estimate for October SA storms
7 February 2022
Catastrophe data company Perils has maintained its initial estimate for losses totalling $1.028 billion three months after severe storms swept across three states in one of the costliest natural catastrophes ever for SA.
The storms impacted the Adelaide region on October 28, bringing heavy hailstorms and strong winds before moving into Victoria overnight and into the next morning, causing more damage as wind gusts of up to 146 km/h were recorded. The system moved on to Tasmania, causing strong winds and torrential rain.
The combination of spring hail, strong winds and surface water flooding due to torrential rainfall caused widespread damage to buildings and vehicles. Main causes of damage differed by region but were driven by the same low-pressure front sweeping across the three states.
“The weather patterns witnessed during spring and summer 2021/22 in Australia are strikingly different to those of a year ago, when Australia suffered very hot and dry conditions resulting in one of the biggest bushfire seasons in living memory,” Perils Asia Pacific Head Darryl Pidcock said. “This year has been characterised by very wet weather with frequent torrential rain and hail events.”
Mr Pidcock says the current La Nina weather pattern is set to have peaked last month and might “disappear” by April, which should result in a reduction in extreme rain and hail events.
Perils says damage from the October event is widely covered by insurance with losses mainly relating to property and motor, and contributions also from crop insurance, which is not included in the Perils survey.
The late October event came after Australia’s southern and eastern coastline endured a number of damaging weather systems, adding considerable losses to an already challenging month for the insurance industry.
Perils, an independent Zurich-based organisation providing industry-wide natural catastrophe exposure and event loss data, covers 17 countries including Australia. It will provide a third estimate update on May 2, six months after the event.
