The East Coast Low that affected New South Wales and Queensland in February 2020 resulted in a total industry event loss of $989 million, according to the fourth and final estimate from independent catastrophe insurance data provider PERILS.
This latest tally is slightly higher than the third loss estimate of $958 million that PERILS proposed back in August 2020, and like previous estimates, covers the property and motor hull lines of business.
The East Coast Low resulted in intense rainfall, flash and river flooding, and strong winds from early to mid-February, causing widespread damage, primarily along the coastal areas of New South Wales (88% of the industry loss) and South East Queensland (11% of the industry loss), noted PERILS.
Property damage made up the majority of losses, with 94% attributable to this line of business, while motor losses represented the other 6% of the total industry losses.
“Today’s release constitutes the first complete schedule of reports produced by PERILS for an Australian East Coast Low event and this final detailed industry loss footprint will help further enhance the insurance industry’s understanding of such losses,” said Darryl Pidcock, head of PERILS Asia-Pacific. “During the current summer, Australia’s east coast has continued to experience considerable rainfall and storms due primarily to the influence of La Niña. This report is a reminder that in addition to bushfires, hailstorms and tropical cyclones, the east coast is also exposed to large-scale extratropical cyclone systems, which can have a considerable impact on the insurance industry.”
