Insurers declare Cat for East coast storms, flooding

The Insurance Council of Australia (ICA) has declared a catastrophe for property losses caused by recent storms and flooding along the East coast. Insurers have received more than 10,000 claims with the value of claims estimated at AUD45 million. Most claims are for property damage caused by storm runoff, flooding, strong winds and heavy rain.

“Insurers expect a large number of claims will be lodged over the next 48 hours as property owners inspect the damage to homes and businesses and contact their insurers. It’s likely many householders are unable to contact their insurers due to telecommunications and power interruptions, but insurers are standing by to help,” said Karl Sullivan, ICA head of risk and operations.

“So far most of the claims are from south-east Queensland and along New South Wales coastal regions, but damage has also been reported several hundred kilometres inland and in the ACT. The Catastrophe declaration means claims will be given priority by insurers,” he stated, according to a press release.

This is the sixth Catastrophe declared in the past five months. In September, bushfires in NSW and Queensland resulted in 497 claims worth AUD37 million; October’s Rappville NSW bushfires led to 255 claims and insured losses of AUD19 million; and more than 20,000 claims worth AUD1.65 billion have been lodged for the November to February bushfires that affected Queensland, NSW, Victoria and South Australia. The ICA also declared Catastrophes for hailstorms in November (SE Queensland, 22,000 claims, AUD166 million) and January (ACT, Victoria and NSW, 69,850 claims worth AUD638 million).