The 2023 Christmas Storms that swept across Queensland, New South Wales, and Victoria resulted in insured losses of $1.606 billion, according to the final estimate released by PERILS.
The Zurich-based catastrophe insurance data provider announced the figure as its last update for the event, reflecting a slight increase from its July estimate of $1.563 billion.
The report attributed the majority of losses (89%) to property damage, with motor claims accounting for the remaining 11%.
Queensland bore the brunt of the storms, comprising 70% of total losses, while New South Wales and Victoria accounted for 26% and 4%, respectively.
PERILS collected data from a broad spectrum of the Australian insurance market to produce its final loss estimate.
The report includes a breakdown of claims by postcode, with further distinctions between residential and commercial properties. It also provides metrics such as hail size, wind speeds, and rainfall intensity to support risk assessments and help insurers validate vulnerability models.
The severe weather occurred between December 23 and 29, 2023, driven by a low-pressure system that collided with warm, unstable air masses. The storms brought large hail, damaging winds, flash floods, and tornadoes, with Queensland experiencing the most extensive damage.
Darryl Pidcock, head of Asia-Pacific at PERILS, noted a global trend of increasing convective storm activity, which is impacting the insurance sector.
“Globally, the insurance industry has been experiencing a higher frequency of convective storm activity. While historically we have observed similar patterns in Australia, during the last couple of years, major convective storm-related losses have been comparatively lower than previous years. Notwithstanding, this event reminds us of the potential during the current summer season for considerable losses to be caused by convective storms over an extended period, especially along the East Coast,” he said.
The final report, he added, provides granular data that insurers can use to enhance their understanding of damage patterns and improve preparedness for future events.
The release of the loss estimate coincides with heightened scrutiny of climate risks in the Australian insurance market.
A Senate Select Committee recently issued recommendations aimed at addressing rising insurance costs linked to climate change.
The Insurance Council of Australia (ICA) and the National Insurance Brokers Association (NIBA) welcomed the committee’s findings, which focus on improving resilience and affordability.
