January 10, 2025
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Bushfire: Losses to cross USD1 billion

The Insurance Council of Australia (ICA) has analysed 10,550 claims and announced that the losses from the recent bushfire catastrophe has reached USD939 million. The amount of land burned in the catastrophe is said to be more than 10 million hectares.

Insured losses from the ongoing bushfire catastrophe have devastated areas of NSW, Victoria, Queensland and SA.

Recently the Australian Securities and Investments Commission put the industry on notice saying that it expects those handling claims to do so “with the utmost good faith.”

According to media reports ICA CEO Rob Whelan has already given assurances that insurers are committed to dealing “compassionately and sensitively” with customers and are “ensuring the claims process runs as painlessly and seamlessly as possible.”

The National Insurance Brokers Association (NIBA) had established a bushfire community support initiative to advise people who have suffered losses in the catastrophe.

Various insurers announced their donations, and action plans to ease the burden faced by communities, in addition to ramping up resources to assist policyholders.

QBE this week announced USD400,000 to support relief efforts, adding to USD100,000 pledged in November, and will waive excess payments for bushfire-related insurance claims for individual policy holders.

According to various ratings agencies, Suncorp and IAG, which together control more than half the personal lines market, will bear the brunt of fire-related claims in the form of weaker earnings.

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