Initial insured property claims estimate for the Australian east coast low event, which hit the Australian east coast states of New South Wales and Queensland between Feb. 5-13, 2020, is estimated at A$794 million (US$488.3 million), according to PERILS, the independent Zurich-based organization that provides industry-wide catastrophe insurance data.
Australian east coast lows are very intense low-pressure systems classified as extratropical cyclones, explained PERILS, noting that they typically occur along the Australian east coast and can affect an area stretching from South East Queensland down to the border between the states of New South Wales and Victoria.
The east coast low of February 2020 was a long low-pressure trough extending inland along the Australian east coast. This low-pressure trough drew in moisture from the Tasman Sea which was warmer than usual, particularly off Sydney. The result was very intense rainfall from early to mid-February 2020, leading to flash and river flooding.
PERILS said the rainfall was accompanied by strong winds on Feb. 9 as well as storm surge and high waves. In total, the east coast low caused widespread damage along the coastal areas of South East Queensland and New South Wales.
The resulting insurance loss represents the third largest industry loss from an east coast low event in the last three decades, which only has been surpassed by the east coast lows of June 2007 (estimated at A$ 2.4 billion in today’s dollars) and of April 2015 (estimated at A$1.2 billion in today’s dollars), added PERILS.
In addition, the February 2020 east coast low was the third major catastrophe event during the Australian summer 2019/2020. It added to the already significant loss burden sustained by the region resulting from the 2019/2020 bushfires and the January hailstorms in Eastern Australia, according to PERILS.
An updated estimate of the property market loss from the February 2020 east coast low will be made available by May 13, 2020, three months after the event end date. PERILS’ claims estimates are based on loss data collected from affected insurers.
“The summer of cat events continued with the east coast low event following the Australian bushfires and hailstorms,” commented Darryl Pidcock, head of PERILS Asia-Pacific.
“With a combination of heavy rainfall, strong wind gusts and storm surge, considerable insurance losses were experienced. Whilst the east coast low caused significant property damage, the heavy rainfall refilled water catchment areas as well as bringing relief to many bushfire and drought-affected rural areas,” he continued.
Source: PERILS
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