Insurance Australia Group (IAG) has activated its emergency response measures as Tropical Cyclone Alfred approaches the Australian coastline, with expected impacts across South East Queensland and Northern New South Wales.
The cyclone is projected to make landfall between Brisbane and the Sunshine Coast, bringing strong winds, heavy rain, large swells, and the potential for flooding.
IAG stated that its Major Event Response and Natural Perils teams have been monitoring the cyclone for the past week, preparing claims staff, assessors, and partner builders to assist customers in affected areas.
Nick Hawkins, IAG’s managing director and CEO, advised residents in the cyclone’s path to prioritise safety and follow the guidance of emergency authorities.
“Many people across these communities have been impacted by extreme weather and natural disasters over the past few years, and we know this is an anxious time," said Hawkins.
The company is coordinating its efforts through its Major Event Command Centre, with call centres across Australia and New Zealand equipped to handle claims and customer inquiries.
IAG said that it has already contacted many policyholders to provide information on how to lodge claims and access various forms of support, including emergency financial assistance and temporary accommodation. The insurer also said that it is working closely with partner builders and assessors to expedite the claims process for those impacted by the cyclone.
In addition to its internal preparations, IAG referenced the federal government’s Cyclone Reinsurance Pool, which offers protection for damage caused by cyclonic winds and related water damage. This coverage extends for 48 hours after the cyclone is downgraded by the Bureau of Meteorology. The pool is designed to mitigate the financial impact of severe weather events on insurers and policyholders.
IAG also outlined details of its own reinsurance arrangements. The company’s quota share reinsurance covers 32.5% of all losses. It has catastrophe cover in place for 67.5% of losses exceeding $500 million, with coverage extending up to $10 billion. Additionally, the company has perils volatility cover of $680 million, which is intended to protect against financial costs surpassing the FY25 allowance of $1.283 billion.
IAG reported in its half-year financial update on Feb. 13 that natural perils costs were approximately $100 million below expectations at that point.
Have anything to say about this story? Let us know in the comments below.
