ICA declares “insurance catastrophe” for Christmas storms

The Insurance Council of Australia (ICA) has declared an “insurance catastrophe” in response to the severe storms that impacted Queensland, New South Wales (NSW), and Victoria over the Christmas period.

The decision, it stated, reflected the severity of the situation and the high volume of received claims.

Insurance catastrophe declaration

Under the “insurance catastrophe” declaration:

• Insurers will prioritise claims from affected policyholders, with a focus on directing urgent assistance to the worst-affected property owners;
• ICA representatives were mobilised to collaborate with local agencies and services and assist affected policyholders as soon as emergency services deemed it safe to do so;
• Insurers will deploy disaster response specialists for claims and assessments in coordination with emergency services; and
• An industry taskforce has been established to address issues arising from this catastrophe.

As of December 29, insurers had received 18,174 claims related to the storms, with 10,716 claims in the Gold Coast region alone. Power outages hindered access to storm-damaged areas.

“Given the immense scale and destructive nature of these storms across eastern Australia, the Insurance Council and insurers are escalating our response to a catastrophe level to better serve the immediate and future needs of our customers,” said ICA COO Kylie Macfarlane. “Insurers expect claims volumes to grow in the coming days as more residents gain access to properties and power is restored to some areas; however, it is too early to understand the cost of the damage.”

In light of these circumstances, the ICA encouraged homeowners and business owners impacted by the storms to contact their insurer promptly to initiate the claims process, even if the full extent of the damage is unclear. Those involved in cleanup efforts are not obligated to retain damaged property, including carpets and furnishings. Instead, they must take photos, record identifying information, and keep material samples for claims purposes.

The ”insurance catastrophe” declaration for the Christmas storms follows the ICA's “insurance catastrophe” declaration in response to the impacts of ex-Tropical Cyclone Jasper.