Insurance Claims Surge Following Ex-Tropical Cyclone Alfred
The Insurance Council of Australia (ICA) reports a significant influx of over 22,000 insurance claims from policyholders in southeast Queensland and northern New South Wales due to the aftermath of ex-Tropical Cyclone Alfred. The claims breakdown is as follows: 20,460 Home claims, 1,182 Motor claims, and 758 Commercial claims.
Notably, the majority of these claims have originated from Queensland with a total of 20,665 reports. However, as areas in New South Wales become accessible, the ICA anticipates an increase in claim numbers in the coming days.
At this stage, it remains uncertain how severely Cyclone Alfred will impact the region in terms of the total financial damage. The ICA highlighted a comparison with past cyclones, mentioning that Tropical Cyclone Jasper (2023) led to $409 million in claims from approximately 10,500 reports. In contrast, Australia’s most costly cyclone to date, Cyclone Tracy (1974), would result in $7.4 billion in claims when adjusted to 2023 values.
According to Andrew Hall, CEO of the Insurance Council of Australia, the daily rise in claim numbers reflects residents and businesses assessing the extensive damage. Insurers are prioritizing claims from those affected by the ongoing severe weather conditions. Hall stated, “The spike in claims aligns with the recovery phase as individuals start the cleanup and damage assessment. We recommend policyholders to file claims even if the full extent of damage is not yet clear.”
Suncorp, a major insurer, has reported receiving approximately 7,800 claims across both Queensland and New South Wales as of March 11. Among these, 7,200 relate to Home claims, including over 2,100 incidents of food spoilage. Most of these submissions fall within the Cyclone Reinsurance Pool coverage period.
Steve Johnston, CEO of Suncorp, emphasized, “We urge customers to prioritize their safety amid ongoing flooding across various communities. We encourage affected individuals to submit claims online promptly.”
Suncorp has deployed dedicated customer support teams, mobile response hubs, and assessors to the affected areas as conditions permit. Johnston added, “Our investment in disaster management capabilities and claims resources positions us well to support the recovery process.”
Importantly, Suncorp is protected by a comprehensive reinsurance program designed to mitigate risks from substantial weather events, featuring a maximum event retention of $350 million. Their principal catastrophe cover extends up to $6.75 billion with full reinstatement. Additionally, Suncorp maintains residual coverage from its Queensland Quota Share arrangement, covering roughly 25% of Home customers in the state.
