Impact of Cyclone Alfred on Australia
Global insurance and reinsurance broker, Aon, has projected that the economic and insured losses from Cyclone Alfred are likely to reach into the hundreds of millions of AUD. However, the ultimate financial repercussions and their effects on the local reinsurance market remain uncertain at this early stage.
Insurance Catastrophe Declared
On March 9th, the Insurance Council of Australia (ICA) officially declared Cyclone Alfred an insurance catastrophe. By March 11th, 2025, the ICA had already received over 22,000 claims from policyholders residing in southeast Queensland and northern New South Wales.
Claims Breakdown
In New South Wales, the ICA recorded 1,725 claims, distributed as follows: 1,546 for home, 113 for motor, and 76 for commercial. Meanwhile, Queensland reported 20,665 claims, with homes accounting for 18,914, motor 1,069, and commercial 682. This results in a total of 22,400 claims, categorized into 20,460 home, 1,182 motor, and 758 commercial claims.
Cyclone Alfred’s Landfall
Cyclone Alfred made landfall near Brisbane at approximately 23:30 AEST on March 7th, 2025. As the seventh named storm of the Australian cyclone season, it significantly impacted southeast Queensland and New South Wales North Coast, particularly the densely populated Brisbane area. The cyclone posed a high risk of substantial damage due to intense winds, flooding, and storm surges.
Damage and Disruption
The cyclone inflicted severe damage and disruption in both Queensland and New South Wales. Over 20,300 properties were at risk from storm surges, while more than 450,000 properties in Queensland experienced power outages, marking the largest disaster-related outage in the state’s history. Tragically, at least one person lost their life, several sustained injuries, and a number of individuals remain missing.
Preliminary Financial Assessment
Although it is premature to pinpoint the eventual financial impact and its repercussions on the local reinsurance market, the preliminary figures indicate a significant burden on the insurance sector. Economic and insured loss impacts are anticipated to reach at least into the hundreds of millions AUD, according to Aon’s report.
