The Insurance Council of Australia (ICA) says that insurers have so far received more than 15,700 claims from the recent severe weather affecting regions across metropolitan and regional Victoria, with more claims expected to be lodged over the coming days and weeks.
The estimated cost is thought to be around $144 million at present, but with many areas not yet accessible to assessors, both the claims count and total loss will likely rise much higher.
Earlier this week, the Insurance Council of Australia (ICA) declared a catastrophe event in Victoria after thousands of homes and businesses were left without power.
IAG alone has received roughly 4,300 claims as a result of the property damage caused by the storms in Victoria and warned that its stop loss reinsurance could be close to attaching.
And Suncorp has likewise recorded 3,750 claims so far, adding on to a heavy year for catastrophe events in Australia that has already seen the insurer exceed its $915 million year to date natural hazard allowance.
According to the ICA, the impact of flooding has been felt the most in Gippsland around Traralgon and in the Yarra Ranges.
The Association’s declaration of a catastrophe for the flooding in Victoria means that claims from affected policyholders will be given priority by insurers.