The latest analysis by the Insurance Council of Australia (ICA) has disclosed that extreme weather increased insured losses by 727% in 2025 to AUD 4.8 billion as claim numbers climbed to 294,000, of which over AUD 4.1 billion came from Queensland alone.
The ICA’s last extreme weather media release noted 2025 costs were at $3.5 billion; the jump to $4.8 billion was driven by increased costs and more claims lodged from the two severe storm and hail events.
Last year saw five events declared significant or catastrophic by the Insurance Council. These include the North Queensland Floods in February, Ex-Tropical Cyclone Alfred in March, the Mid North Coast floods in May, and two severe storm events in October and November.
The total economic cost of extreme weather events in 2025, including insured losses and broader economic costs, is estimated to be over $8.6 billion, explained the ICA.
In 2025, insurers handled 294,000 claims from declared extreme weather events, almost six times the prior year, with average costs per claim jumping 39% to $16,471.
This compares to AUD 2.35 billion of insured losses from extreme weather in 2023 and $585 million in 2024.
Additionally, the November storms have overtaken Ex-Tropical Cyclone Alfred as the costliest event, drawing 92,900 claims and losses of AUD 1.7 billion, despite the cyclone remaining the event with the highest claims count, with over 133,000 lodged totalling $1.5 billion.
The severe storm and hail event across Queensland and New South Wales damaged car roofs and windshields, uprooted trees, and inundated homes with water, resulting in almost 93,000 claims totalling $1.78 billion.
In February 2026, Zurich-based catastrophe insurance data provider PERILS placed its second insurance market loss estimate for the same event at AUD 1.512 billion.
The severe spring storms that affected South East Queensland and Northern New South Wales from earlier that month have now reached almost $900 million across 41,200 claims.
To summarise, the North Queensland floods incurred claims of 11,770 and losses of $316 million, and the Mid North Coast and Hunter floods saw 14,700 claims and losses of AUD 275 million. Meanwhile, Bondi Event has so far reported 39 claims and losses of AUD 0.6 million.
The ICA warns that unpredictability and intensity of extreme weather are growing, demonstrating the urgent need for the Government to invest in mitigation to protect Australia’s most vulnerable communities from the impact.
In 2025, Australia’s general insurers paid $58.9 billion in claims – up 18% on the previous year – across 90 million policies, the equivalent of $226 million every working day.
Andrew Hall, Chief Executive Officer, ICA, commented, “While Queensland is no stranger to extreme weather, four severe events impacting a single state in 12 months is significant, with many communities still on the road to recovery. Storms and hail are complex events that often have a long tail, meaning claims continue to grow months after the event as more are lodged and assessed. The insurance industry is very alive to supply chain challenges and pressures across the construction and transport sectors as a result of ongoing conflict in the Middle East.”
