Insurers received 107,844 claims related to the catastrophic floods in southeast Queensland and New South Wales (NSW) as of March 9, 2022, according to the Insurance Council of Australia (ICA).
The latest figure was an 11% increase from the previous day's claims count, driven by a 25% increase in the number of insurance claims from NSW. Of the claims filed, 65% were received by insurers from Queensland and 35% from NSW. Across both states, domestic property accounted for 80% of claims, motor vehicles 17%, and commercial property 3%.
In Insurance Australia Group (IAG) alone, its brands reported receiving around 24,000 claims related to the storms and floods in Queensland and NSW as of March 9, including approximately 3,500 claims from the widespread flooding across Sydney over the last four days.
Based on previous flood events and the recent number of insurance claims, the ICA estimated that the current cost of claims totalled $1.62 billion, subject to a detailed assessment of claims as loss adjustors move in over the coming weeks.
As the number of insurance claims continues to rise, the ICA has welcomed the Federal Government's national emergency declaration, reflecting the extent and severity of the disaster.
“It is important for policyholders to note that a declaration by any government or indeed the Insurance Council has no effect on the application or coverage of a policy, including the excess if there is one,” said ICA CEO Andrew Hall. “The General Insurance Industry Code of Practice commits insurers to respond to catastrophes efficiently, professionally, practically, and compassionately.”
Meanwhile, IAG offered assurances to affected customers and communities that it has put up extensive reinsurance protection. The insurer estimates it will incur a net claims cost of approximately $74 million from the severe weather event in both states, lower than the $95 million estimate disclosed on March 1, 2022.
Moreover, IAG-backed NRMA Insurance (NRMA) confirmed that its helicopter has been in the air to support flood response by transporting NSW SES volunteer rescue teams and essential supplies to isolated communities, as well as providing critical flood intelligence across affected areas.
IAG managing director and CEO Nick Hawkins added: “We have all hands on deck for our NRMA Insurance, CGU, and WFI customers with extra people on the phones and on the ground in devastated areas in Queensland and NSW. Our assessors and repairers have started assessments and emergency make-safe repairs in impacted areas, and we are securing temporary accommodation for customers who can't return to their homes.”
