Catastrophe insurance data provider PERILS has estimated that the April 2020 Central Queensland hailstorms will cost the re/insurance industry approximately AU $604 million (US $430 million).
Six months on from the event, this is PERILS’ first estimate, given that insured losses were not initially expected to exceed the firm’s loss reporting threshold of AU $500 million.
However, in recent months, the insurance industry has experienced unusually late and significant claims development, PERILS said.
Severe thunderstorms developed over the Central Highlands and Capricornia districts in Queensland on the afternoon of 19 April producing hail of 8 to 10 cm in diameter.
This was an unusual event for the region given the overall size of the hail and the fact that it occurred late in the season.
The largest hail impact was recorded in Rockhampton and Yeppoon, where the storms caused extensive damage primarily to residential homes and commercial properties.
Wind gusts of up to 100km/h were also recorded in Mackay, and some surrounding rural areas were also impacted by the hail, which caused damage to crops.
According to PERILS, property damage constituted 95% of the total insured losses with residential property accounting for 79% and commercial property 16% respectively, while motor losses, personal and commercial lines combined constituted a further 5% of the industry loss.
“This event was particularly challenging for the industry not only because of the large hail size so late in the season, but also the late and significant claims development,” said Darryl Pidcock, Head of PERILS Asia-Pacific.
“Notwithstanding, with the support of our insurance partners during challenging times, PERILS has been able to produce this footprint which will be the second Australian hail event released this year which is divided into residential and commercial property and motor lines at postcode resolution,” Pidcock continued.
“This report will further enhance the understanding of the peril and contribute to improvements in understanding and modelling of hail.”
An updated estimate of the industry loss from the April 2020 Central Queensland Hailstorms will be made available by PERILS on 19 April 2021, one year after the event’s end date.
