IAG has received roughly 4,300 claims as a result of the property damage caused by Victoria’s recent exposure to destructive weather events.
The Australian insurer expects claims to continue rising as residents return to their homes and inspect the damage and warned that its stop loss reinsurance could be close to attaching.
As of May 1, IAG’s natural perils claim costs were around $660 million, including the net cost of Cyclone Seroja in Western Australia in April.
Following the storms in Victoria and including estimated attritional peril claim costs in June, IAG estimates its FY21 net natural perils claim costs will be between $720 million and $743 million
This compares to a perils allowance of $658 million and previous guidance of between $660 million and $700 million.
IAG says the upper end of this range reflects its FY21 stop-loss protection for retained natural perils claim costs, providing protection of $100 million in excess of $1.1 billion.
Commenting on recent events in Victoria, executive general manager of direct claims Luke Gallagher called for customers to stay safe and follow the advice of emergency authorities.
“Floodwater is extremely dangerous, so please take every precaution. We have assessors and builders on the ground ready to ensure our customers’ properties are safe and secure,” Gallagher said.
“We will contact those impacted to book in property assessments, so repairs can begin as soon as possible. We can also arrange emergency accommodation and provide immediate financial assistance for customers in need.”
