The Insurance Council of Australia (ICA) has reported that 48,220 claims have been made related to the flooding in South-East Queensland and the New South Wales coast, this is a 53% increase on yesterday’s claims count and demonstrates the significant impact of this event.
37,807 of these claims are from Queensland, with the remainder from New South Wales.
New South Wales figures are expected to increase in coming days as more policyholders return to their homes and businesses.
84% of total claims relate to property, with the remainder motor vehicle.
Currently, insurers do not have an estimate of claims costs, and ICA CEO Andrew Hall is expected to meet with State and Federal Government stakeholders to report on insurers’ activity and to ensure the recovery process fully supports impacted communities.
Within the meeting, a discussion over the availability and affordability of flood cover will be held.
The ICA has been working with members to conduct an aerial survey of the impacted zones to prepare high-resolution imagery of the event.
S&P Ratings has also announced that it will be reinsurers who are likely to assume most of the losses, with the ongoing extreme rainfall and flooding is looking to be a AUD$1 billion-plus insurance event.
This exposure could increase to AUD$2 billion with ongoing Brisbane River inundation in urban areas and as the storm cell moves further into New South Wales.
This would place the insurance exposure alongside that of Australia’s largest flood events. These include the AUD$2.1 billion in insurance losses from Brisbane flooding in January 2011, but short of the January 1974 AUD$3.2 billion Brisbane flooding, which was associated with a tropical cyclone.
Hall commented: “Following the 2011 Brisbane floods, insurance policies now have a standard flood definition.
“If a policyholder has opted out of flood they are most likely still covered for storm damage, and if they are unsure they should speak with their insurer.
“Insurance prices risk, and that means that for those in flood-prone locations, particularly small businesses, flood cover can be costly.
“That is why the ICA has called on all Australian governments to do more to protect homes, businesses, and communities from the impacts of extreme weather.
With appropriate mitigation infrastructure and household-level programs, property can be better protected and premiums can decrease, but this can only be achieved if governments act with urgency.”
