PERILS, an independent Zurich-based organization, has released its fourth and final industry loss estimate for the Australia Christmas Storms. These storms impacted Victoria, New South Wales, and Queensland from December 23 to 29, 2023.
The final insurance market loss is estimated at AUD 1,606 mn, up from the previous estimate of AUD 1,563 mn issued on July 1, 2024. This figure includes property and motor lines of business, with property losses accounting for 89% of the total and motor losses contributing 11%.
Queensland bore the brunt, representing 70% of the total industry loss, followed by New South Wales (26%) and Victoria (4%). The estimate is based on loss data provided by the majority of the Australian insurance market.
The report offers a detailed breakdown of losses by postcode within high-resolution CRESTA Zones, segmented into residential and commercial lines.
It also includes data on hail size, wind gust speeds, rainfall amounts, and damage degrees, expressed as a percentage of sums insured.
These metrics support damageability assessments of insured property and vehicles and aid in validating vulnerability functions within probabilistic catastrophe models.
The storms resulted from a low-pressure system and its cold front interacting with hot, humid, and unstable air masses. This interaction triggered severe convective activity, including large hail, strong winds, flash floods, and tornadoes.
Queensland faced the most significant impact, with the effects extending into New South Wales and Victoria.
Darryl Pidcock, Head of Asia Pacific at PERILS, highlighted the global increase in convective storm frequency. Although Australia has historically seen similar patterns, major convective storm-related losses have been relatively lower in recent years. Pidcock emphasized the importance of this event as a reminder of the East Coast’s vulnerability during the summer season.
This final report provides extensive data at the postcode level, including storm intensities and damage metrics. We deeply appreciate the support of our insurance partners in sharing this critical data
Darryl Pidcock, Head of Asia Pacific at PERILS
This final industry loss footprint underscores the scale and complexity of the 2023 Australia Christmas Storms and offers valuable insights for catastrophe risk assessment.
