Reinsurance News

Estimated total flood claims reach AUD$1bn: ICA

4th March 2022 - Author: Katie Baker

The Insurance Council of Australia (ICA) has reported that insurers have received 67,537 claims related to the ongoing flooding in South-East Queensland and New South Wales, a 12% increase from yesterday’s claims count, indicating that the rate at which claims are coming in is slowing.

ica-insurance-council-australia-logo76% of those claims were from Queensland, with 24% coming from New South Wales, which are still expected to increase in coming days as the impacts of the weather event become more apparent.

82% of claims are for domestic property, with the remainder motor vehicle.

Based on previous flood events the estimated current cost of claims is now just over $1 billion, which will be heavily assessed as loss adjustors move in over the coming weeks and will increase as further claims are made.

ICA CEO Andrew Hall today welcomed comments by National Recovery and Resilience Agency (NRRA) head, Shane Stone, who has called for a review of land use planning arrangements.

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Hall said: “The impacts of this event across two States are still coming into focus, and we are particularly concerned about the community of Lismore who have been absolutely devastated.

“An army of insurance assessors are already on-the-ground helping with claims where it is safe to do so, and we are working closely with all levels of government and community to see this happen as quickly as possible.

“Claims handling reforms have significantly improved the customer experience, and eligible customers in urgent need can now more quickly receive an advance cash payment of up to $5,000.

“Customers may also be able to access temporary accommodation under their policy, although I acknowledge that this is particularly tight in Lismore and some other locations.

“This event has just reinforced the need for a national conversation about what we build and where we build it, and to that end I welcome comments by NRRA head Shane Stone today and look forward to taking up this issue with State and Federal Governments in coming months.”

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