PERILS, the independent Zurich-based, has released its fourth and final estimate for the industry losses caused by the Australia Christmas Storms that impacted Victoria, New South Wales, and Queensland from December 23 to 29, 2023.
PERILS organization estimates the total insurance market loss at AUD 1.61 bn, slightly up from its previous estimate of AUD 1.56 bn issued in July 2024.
The loss figure covers both property and motor claims. Property accounted for 89% of the total, while motor losses made up the remaining 11%. Queensland bore the majority of the impact, representing 70% of total losses, followed by New South Wales (26%) and Victoria (4%).
Detailed Breakdown of Losses
The final report offers a granular breakdown by postcode, covering residential and commercial losses separately. Data includes details on maximum hail sizes, wind speeds, rainfall amounts, and the extent of damage relative to sums insured. This information is valuable for assessing the vulnerability of insured assets and validating catastrophe risk models.
The Australia Christmas Storms were driven by a severe convective storm system that brought large hail, intense winds, flash flooding, and tornadoes. Queensland saw the most significant storm activity, with the weather system extending into New South Wales and Victoria.
Higher Frequency of Convective Storms
Darryl Pidcock, Head of Asia Pacific at PERILS, noted a global trend of increased convective storm activity. He stated that while Australia has historically experienced similar weather patterns, recent years have seen fewer major losses from such storms. However, this event highlights the risk of substantial losses during the summer season, particularly along the East Coast.
Pidcock added that the report’s postcode-level loss data includes details on hail, wind, and rainfall intensities. He expressed gratitude for the ongoing support from insurance partners in sharing critical data.
PERILS provides natural catastrophe exposure and event loss data to the global insurance industry. Its Industry Exposure & Loss Database, available by subscription, includes property sums insured and event loss data by CRESTA zone and property line of business.
