The Australian insurance industry is estimated to have incurred losses of A$2.25bn (US$1.46bn) from Cyclone Alfred earlier this year, according to PERILS.
The Zurich-based research organisation said this second industry loss estimate is 12% lower than its initial figure of A$2.57bn, issued on 23 April. In line with PERILS’ Australia coverage definition, the estimate is based on data collected from affected insurers and covers property and motor hull lines of business.
Commenting on the findings, Darryl Pidcock, Head of Asia Pacific & Cyber at PERILS, said, “While the number of claims has remained stable, the average claim amount has reduced from $16,000 to $14,000.”
“Compared to other storm and flood events, this average claim amount is comparatively low, reflecting, in part, the relatively high proportion of food spoilage claims caused by extended power outages,” Pidcock added.
PERILS noted that wind damage was not a major contributor to insured losses, as wind gusts weakened significantly before landfall. However, heavy and persistent rainfall still caused substantial damage, though not at levels initially expected.
A third loss estimate is scheduled for release in three months and will include a more detailed breakdown by postcode, line of business, and coverage.
Cyclone Alfred made landfall on 7 March as a Category 1 cyclone in southeast Queensland and peaked at an offshore intensity of Category 4. The storm, which affected the Australian states of Queensland and New South Wales until 12 March, left over 300,000 homes and businesses without power, destroyed several buildings and properties, and caused one fatality.
The ex-Cyclone, along with the North Queensland Floods in February, resulted in 126,000 claims being lodged, with a total value of A$1.5bn, according to the Insurance Council of Australia.
