The Insurance Council of Australia (ICA) has extended its Insurance Catastrophe declaration for the recent storms, rain and flooding to 3 January, underscoring the impact of severe weather across the east coast from Christmas through to the New Year.
On December 27, the ICA declared a ‘Significant Event’ for regions of Queensland, New South Wales and Victoria impacted by the severe storms, later noting a substantial rise in claims in these regions.
According to the ICA, almost 38,000 claims have now been lodged since 23 December.
Andrew Hall, ICA CEO, commented, “The volume and intensity of the storms that have impacted three states prior to Christmas has caused substantial damage.
“These severe storms have caused significant stress and uncertainty to those impacted, and insurers are already assisting customers with claims and the recovery process. Insurance assessors are being deployed to the most recently affected communities from today.”
The Council explained that its Catastrophe declaration – known as Cat 233 – serves to escalate and prioritise the insurance industry’s response for affected policyholders.
Under the Catastrophe declaration, claims from affected policyholders will be given priority by insurers, and will be triaged to direct urgent assistance to the worst-affected property owners.
ICA representatives will also be mobilised to work with local agencies and services and affected policyholders “as soon as emergency services say it is safe to do so.”
Elsewhere, Suncorp recently announced that approximately 19,000 claims have been received from customers impacted by these weather events (including ex-Tropical Cyclone Jasper).
“Queensland has been hardest hit with 12,500 total claims and 9,500 home claims, with more expected as the full impact of the current flooding in the South East becomes known,” the firm explained.
Suncorp Group CEO, Steve Johnston, commented, “While the damage I have seen across both the South East and Far North of Queensland has been significant and the recovery will take time, we have our teams and full supply chains mobilised and in action.
“These rolling series of storms extended across multiple states and as far inland as Orange in the Central Tablelands of New South Wales. We have good capacity with builders, Assessors and Claims Teams already working across multiple impacted communities helping get our customers back on their feet.
“These storms have been a reminder of the devastating impact of extreme weather and our deepest condolences to all those who have lost family and friends.”
“I also want to thank everyone involved in the ongoing response and recovery who have rolled up their sleeves to help the community in a time of need – including our partners, the Queensland, New South Wales and Victorian SES.”
Suncorp observed that whilst it is too early to provide a total forecast cost of these events given their ongoing nature, the firm expects to be within its natural hazard allowance of $680 million for the half year to December 2023. The natural hazard allowance for FY24 is $1,360 million.
Suncorp has a comprehensive reinsurance program in place, with a maximum event retention of $350 million and a 30% Queensland Home quota share.
