According to data from the Insurance Council of Australia (ICA), re/insurers have already paid out AU $3.85 billion (US $2.79 billion) to customers affected by last summer’s bushfires, floods and hailstorms.
ICA CEO Rob Whelan said the industry was well ahead of its normal natural disaster response, with more than 83% of bushfire claims already closed.
This is despite a dramatic curtailing of services and resources since the start of the COVID-19 pandemic and the challenges of working in remote regions, he added.
Re/insurers have received more than 297,780 claims from four ICA-declared catastrophes during the 2019-20 summer, with losses of almost $5.4 billion.
So far, insurers have spent $3.85 billion in property repairs and rebuilding works, emergency accommodation and support, replacement of contents, new and repaired vehicles, plant and equipment, and financial settlements.
“The industry’s efforts to help their customers through the emotional, physical and financial blows caused by these catastrophes is the best I’ve seen, despite the complications of COVID-19, and insurers continue to fine-tune their response,” said Whelan.
“The pandemic complicated our industry’s ability to physically respond in a timely manner, to get assessors and tradespeople into affected areas, overcome logistical challenges, source materials and labour, and to begin repairs and rebuilds,” he explained.
“However, insurers have worked tirelessly since the summer catastrophes and during the COVID-19 crisis, managing lockdown and social distancing constraints to continue their work to help customers and communities across southern and eastern Australia.
Breaking down the response by each disaster event, re/insurers received 38,416 claims for the historic bushfires that tore through the southeast of Australia last summer, with losses estimated at $2.33 billion.
More than 83.5% of the 9,389 home building claims from the bushfires have been closed, as well as 93.7% of contents claims, 88.5% of domestic motor vehicle claims, 90.5% of commercial motor claims and 81% of commercial property claims.
For the November hailstorms, re/insurers received 29,782 claims with losses of $481.92 million. Here, more than 82% of 9858 residential building claims and 86.2% of 1677 contents claims have been closed, as well as 94% of motor claims and 84% of commercial property claims.
For the January hailstorm event, meanwhile, the industry dealt with 129,201 claims and losses of $1.625 billion. About 90% of claims lodged were for household losses, and 10% were commercial claims.
Finally, the February East Coast storms and floods resulted in around 100,384 claims with losses estimated at $958 million.
To date, re/insurers have closed more than 70% of residential building claims and 75% of contents claims stemming from this event, in addition to 92% of domestic motor claims, 79% of commercial motor claims, 65% of commercial property claims, and 63% of business interruption claims.
