According to the Insurance Council of Australia (ICA), almost $1 billion has been paid to policyholders after one of the most costly flood events occured in Queensland and NSW earlier this year.
The ICA has increased the estimated insured losses for the disaster by 28% to $4.3 billion.
The only Australian catastrophes to cost more were the 1999 Sydney hailstorm ($5.57 billion), the 1974 Cyclone Tracy ($5.04 billion), and the 1967 Cyclone Dinah ($4.69 billion) on a normalised loss basis.
The ICA had previously estimated $3.4 billion, however due to claims progression and an increase in larger commercial claims, the bill estimate has dramatically increased.
Across NSW and QLD, there have been 216,465 claims, and more than a fifth of them are already closed.
ICA CEO Andrew Hall says the government will have a role to play in ensuring that Australians can access insurance for future catastrophes.
“Keeping Australia insurable as extreme weather events worsen requires governments to invest in appropriate physical mitigation and adaptation strategies,” ICA CEO Andrew Hall said.
From February 22 to March 9, intense rainfall struck Maryborough in Queensland down to Grafton in NSW. Many areas received more than half their average annual rainfall in just a week. NSW’s Lismore suffered devastating flooding as the Wilsons River exceeded the former record set in 1954 by over two metres.
As Australia continues to experience extreme weather events all across the country, it’s important to make sure that you are keeping your home and assets protected.
Contact the team at Business Insurance Consulting to learn more about your home and business insurance today!