PERILS has published its second insurance industry loss estimate for Cyclone Alfred, which impacted Queensland and New South Wales between 28 February and 12 March 2025.
Based on data submitted by insurers, the updated figure stands at AUD 2.25 bn. This represents a 12% reduction from the initial estimate of AUD 2.568 bn issued six weeks after the event, on 23 April 2025.
The reported loss includes property and motor hull claims, in line with PERILS’ coverage definition for Australia. A detailed industry loss footprint, segmented by CRESTA zones and insurance lines, will be released on 12 September 2025, six months after the event.
Cyclone Alfred made landfall on 7 March as a Category 1 system near the Gold Coast, after moving southward offshore for several days. It had earlier intensified to Category 4 while at sea, but wind speeds weakened prior to landfall.
The cyclone brought substantial tropical moisture, resulting in extensive rainfall across southeast Queensland and northeast New South Wales.
The storm caused widespread power outages, affecting over 300,000 homes and businesses, and inflicted serious damage to coastal areas including the beaches of the Gold Coast and Sunshine Coast. Transport services were disrupted, with suspended flights and school closures. One fatality was reported.
According to PERILS’ Head of Asia Pacific & Cyber, Darryl Pidcock, the overall reduction in loss estimate is atypical for events in Australia. While the total number of claims remained stable, the average claim value dropped from $16,000 to $14,000.
A significant portion of claims related to food spoilage due to prolonged electricity outages, contributing to a lower average payout. Wind damage played a minimal role, as gusts weakened before landfall.
However, the prolonged rainfall still resulted in property losses, although these were lower than initially forecast.
The third loss estimate, expected in three months, will provide a detailed breakdown by postcode, insurance line, and coverage category.
