The Insurance Council of Australia (ICA) has classified the aftermath of ex-tropical Cyclone Alfred as an insurance catastrophe.
Insurers have received more than 22,000 insurance claims from policyholders across southeast Queensland and northern New South Wales following ex-Tropical Cyclone Alfred.
While the majority of claims are from Queensland, claim numbers across New South Wales are expected increase in coming days as some areas reopen.
While the clean-up has begun for some communities, many still remain without power and are on continuing flood alert with some rivers yet to peak.
Claim numbers are rising daily with people assessing the damage to their properties and businesses. Insurers are committed to prioritising claims made by customers affected by this ongoing weather event.
Andrew Hall, CEO, Insurance Council of Australia
“Today’s spike in claims was very much expected and in line with this stage in the recovery process as people start the clean-up process and get back to their homes to assess the damage,” Andrew Hall says.
Severe storms and flooding have impacted northern Queensland and nearby areas in Australia since Jan. 29. The Insurance Council of Australia (ICA) classified it as a “significant event.” The situation continues, and insurers have started reporting claims.
The storm’s most severe effects have been in the Gold Coast, Brisbane, Hervey Bay, and the Northern Rivers, but the declaration covers all claims linked to Alfred, the ICA stated.
This remains an active event, and it will take time to fully assess the damage. Insurers anticipate more claims in the coming days as property owners return to assess their homes and businesses.
ICA Chief Executive Officer Andrew Hall
The catastrophe declaration streamlines the insurance industry’s response, prioritizing assistance for the hardest-hit policyholders. The ICA said insurers will provide urgent support to the most affected property owners.
ICA representatives will coordinate with local agencies, while disaster response teams from insurers will process claims and conduct assessments as soon as conditions allow. The ICA added that an industry task force will work to resolve emerging issues linked to Alfred.
Ex-Tropical Cyclone Alfred, initially forming as a tropical low in the Coral Sea on 20 February 2025, escalated to a Category 4 severe tropical cyclone before making landfall in southeast Queensland and northern New South Wales in early March.
The cyclone’s passage resulted in extensive damage across affected regions. Approximately 316,540 properties in Queensland experienced power outages, with the Gold Coast being notably impacted.
Heavy rainfall led to significant flooding, prompting emergency responses and evacuations. Coastal areas, particularly the Gold Coast, suffered severe erosion, leading to concerns about beach accessibility ahead of the upcoming tourism season.
In response to the disaster, the Australian government announced financial assistance for affected individuals. Eligible residents can access the Disaster Recovery Allowance, a short-term payment designed to support those who lost income due to the cyclone.
Additionally, grants of $1,000 per eligible adult and $400 per eligible child have been made available for those with significant property damage or injuries.
The cyclone’s impact extended beyond immediate infrastructural damage. On Queensland’s Sunshine Coast, erosion from Alfred uncovered the remnants of the S.S. Dicky, a shipwreck dating back over 130 years. Residents have been advised on proper disposal of sandbags and cautioned about potential increases in insurance premiums due to heightened cyclone risks.
The financial ramifications of Alfred are substantial. Estimates suggest that the economic cost could reach $1 bn per day, encompassing damages, recovery expenses, and disruptions to businesses and services.
