Property, Motor Vehicle Insurance Claims From Severe Australia Floods at A$900M and Rising

Property and auto insurers in Australia have received 60,163 claims related to the ongoing disastrous flooding in South-East Queensland and New South Wales. Based on previous flood events, the Insurance Council of Australia (ICA) estimates the current cost of claims to be approximately A$900 million (US$663.6 million).

That claims count figure was reported Thursday and represents a 25% increase on the ICA’s claims count from a day earlier.

The flooding on the East Coast has been going on for more than a week and remains active. The floods have claimed at least 14 lives.

Eighty-three percent of total claims thus far relate to property, with the remainder motor vehicle.

Of the total claims reported, about 77% are from Queensland and 23% are from New South Wales. New South Wales figures are expected to increase in coming days given the current flood emergency impacting in and around Sydney.

ICA said the $900 million figure is subject to detailed assessment of claims as loss adjustors move in over the coming weeks and will increase as further claims are made.

Record Floods on Australia’s East Coast Have Cost At Least 14 Lives

The current flooding comes off the back of a period of high claims because of ongoing summer storm activity, and effects of the pandemic on labour and materials availability and building costs.

“This is an ongoing and severe weather event, so it is still too early to predict where it will end,” commented Andrew Hall, CEO of the ICA.

He said insurers are working closely with local, state and federal officials to ensure that the recovery process is fully coordinated. The ICA has raised concerns about the impact of labor constraints and materials shortages on the rebuild and recovery process.

Source: ICA

Topics Trends Auto Claims Flood Property Australia