PERILS has disclosed its initial industry loss estimate for Cyclone Alfred which affected the Australian states of Queensland and New South Wales during the period of 28 February to 12 March 2025.
The PERILS estimate of the insurance market loss, based on loss data collected from the affected insurers, is AUD 2,568 mn.
In line with the PERILS coverage definition for Australia, this loss number covers the property and motor hull lines of business.
Following the PERILS reporting schedule, an updated estimate of the market loss from Cyclone Alfred will be made available on 12 June 2025, three months after the event end date.
Cyclone Alfred made landfall on 7 March 2025 as a Category 1 system near the Gold Coast in Southeast Queensland after remaining offshore for several days.
Despite reaching an offshore peak as a Category 4 cyclone, the system weakened before landfall but retained significant tropical moisture.
This moisture, combined with the storm’s slow movement and inland topography, produced heavy rainfall across Southeast Queensland and northeast New South Wales.
The resulting downpours caused widespread riverine and flash flooding, severe beach erosion on the Gold and Sunshine Coasts, and left over 300,000 homes and businesses without power.
Transport networks faced major disruption, including flight suspensions and school closures, and one fatality was reported.
PERILS, using data from most affected insurers, estimated the total insurance market loss from Cyclone Alfred at AUD 2.57bn.
The event marks the first time in over 50 years that a cyclone has made landfall so far south along the Gold Coast, with the last occurrence being Cyclone Wanda in 1974.
Darryl Pidcock, Head of Asia Pacific & Cyber at PERILS, noted that losses stemmed from wind and prolonged rainfall impacts. Claims included property damage from storm surge and flooding, water ingress, and widespread food spoilage due to extended power outages.
Pidcock highlighted that, while the event resembled a severe convective storm with strong winds and heavy rainfall, its extended duration amplified the damage.
It has been over 50 years since a cyclone travelled so far south to make landfall at the Gold Coast and its surrounding regions, the last cyclone being Wanda in 1974. Losses were caused by a mix of wind and protracted heavy rain-related damage including a high volume of claims from food spoilage due to the power outages, water ingress and storm surge property damage and some flood related losses.
Darryl Pidcock, Head of Asia Pacific & Cyber at PERILS
In some respects, this event has features similar to a severe convective storm with strong winds and intense rainfall, albeit over an extended period.
Cyclone Alfred now stands as the largest cyclone-related loss for the Australian insurance sector since Cyclone Tracy in 1974, when adjusted to current values.
