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. As of Feb. 5, 1,400 claims had been received, but the ICA stated it is too soon to estimate total losses.
While the true impact of this event on property, business and infrastructure remains to be seen, we know the road to recovery can be difficult.
Andrew Hall, Insurance Council of Australia CEO
“As expected, claims continue to grow from this widespread event and insurers are committed to supporting policyholders through the claims process, both in person at the Insurance Hub and via usual communication methods,” says Andrew Hall, Insurance Council of Australia CEO.
Suncorp Group reported 526 claims by 4 p.m. on Feb. 4. These include 402 home claims, 114 motor claims, and 10 commercial property claims. The company, which operates brands such as Suncorp Insurance, AAMI, Shannons, and Apia, expects more damage as rainfall continues in North Queensland.
Insurers have received more than 3,950 storm and flood related claims over the last seven days. Australian insurers faced $1.46 bn losses during 2024 catastrophe season.
However, it is still too early to estimate the total damage bill as many communities remain isolated and an ongoing and active event for many.
Insurers are supporting impacted customers via the Insurance Hub activated yesterday in Townsville. Representatives from the ICA, Suncorp, RACQ, IAG, Hollard, Allianz, QBE and Youi will be present at Townsville Stadium daily.
The ICA encourages policyholders to make a claim as soon as possible, even if the full extent of the damage isn’t yet known.
- The ICA commences its claims data collection, analysis, and reporting processes in consultation with members.
- ICA representatives will continue to work with government and agencies to understand impacts on the community and ensure affected residents receive assistance.
The highest claim volumes come from Garbutt, Burdell, and Kirwan in Townsville. Suncorp is monitoring Ingham and Cardwell using daily satellite flood mapping to assess current and potential water levels.
Insurance Australia Group Ltd. (IAG) reported 192 claims as of Feb. 5, mainly from customers in Ingham, Kirwan, and Cardwell. IAG’s brands include NRMA Insurance, CGU, WFI, and ROLLiN. Its claims and major event response teams are in North and Far North Queensland.
Insurers have set up a claims hub in Townsville to assist customers, according to the ICA.
This remains an ongoing weather event, and community safety is the priority. However, opening the insurance hub indicates recovery and clean-up efforts have begun in some areas
The ICA declared the storms and flooding a “significant event” over the weekend, allowing it to collect and analyze claims data in coordination with insurers. If claim numbers or complexity increase significantly, or if the affected area expands, the ICA may escalate the classification to an “insurance catastrophe.”
The volume and intensity of this weather has already caused damage across parts of northern Queensland with the risk of flash flooding expected to continue in the coming days.
Insurers understand the impact of these extreme weather events and will be move quickly to ensure communities receive the assistance they need as soon as possible. We are working with the Queensland authorities and will keep the community updated as situations evolve.
Andrew Hall, Insurance Council of Australia CEO
“Safety is our number one priority, so we urge residents in these areas to remain alert and listen to the advice of local emergency services”.
When a Significant Event declaration occurs, the Insurance Council’s preliminary data collection and stakeholder engagement catastrophe processes are activated, assisting the ICA and insurers to better assess the insurance impact of a particular event.
A Significant Event may be escalated to an Insurance Catastrophe if there is a material increase in claim numbers or complexity, if the geographical spread of this event is extended or in consultation with insurers.
To date, there have been seven Significant Event declarations:
- SE 251: North Queensland Floods
- SE 242: April Storms & Severe Weather
- SE 241: Valentine’s Day Storms
- SE 231: Newcastle Hailstorm
- SE 225: River Murray Floods
- SE 224: Central West NSW Floods
- SE 222: NSW Severe Weather
- SE 215: Mansfield Earthquake
The following events were initially declared significant events and were subsequently escalated to Insurance Catastrophes: Cat. 223, Cat. 232, Cat 233.
The Insurance Council of Australia (ICA) and insurers activates an Insurance Hub in Townsville to assist local customers affected by severe storms and flooding that has been impacting the wider region since Wednesday 29 January.
ICA representatives present at the Hub will be able to provide general insurance guidance to property and business owners who have lodged or intend to lodge a claim, while insurers will be able to assist customers directly with their claim.
Representatives from the ICA, Suncorp, RACQ, IAG, Hollard, Allianz and Youi will be at the Insurance Hub.
Details of the Hub are:
- Location: Townsville Stadium, 40-48 Murray Lyons Cres, Annandale
- Dates: Wednesday 5 February to Saturday 15 February, including weekends
- Opening hours: 9am to 4pm daily
Over the weekend the Insurance Council declared the storms and flooding a Significant Event which means:
- The ICA commences its claims data collection, analysis, and reporting processes in consultation with members.
- ICA representatives will continue to work with government and agencies to understand impacts on the community and ensure affected residents receive assistance.
This event may be escalated to an Insurance Catastrophe if there is a significant increase in claim numbers or complexity, if the geographical spread of this event is extended, or in consultation with insurers.
While insurers have received more than 1,400 claims to date, it is too early to estimate the total cost of this event.
As flood waters recede, roads reopen and the clean-up begins, insurers expect claims numbers to increase.
