As communities continue to recover from ex-Tropical Cyclone Alfred, attention is turning to the broader implications of the storm, including the role of climate change in intensifying extreme weather events and the financial strain placed on Australia’s insurance industry.
According to the Insurance Council of Australia (ICA), insurers had received 63,600 claims related to the cyclone as of March 17. Insurers remain active in impacted areas, offering in-person support to policyholders.
The ICA has also introduced an Expression of Interest (EOI) form to attract additional tradespeople from outside the affected regions to assist in rebuilding efforts.
The Climate Council has released a report analysing the storm’s behaviour and its long-term implications.
The report noted that ex-Tropical Cyclone Alfred’s path extended further south than many past cyclones, highlighting concerns that warming ocean temperatures may be altering storm trajectories.
The report identified three key factors that contributed to ex-Tropical Cyclone Alfred’s intensity:
The Climate Council noted that ex-Tropical Cyclone Alfred brought strong winds and heavy rain across multiple states, with some areas experiencing record-breaking conditions.
Wind gusts peaked at 120 km/h in Byron Bay and 107 km/h on the Gold Coast, toppling trees, damaging homes, and causing extensive power outages. Queensland recorded its highest-ever number of power failures linked to a weather event, leaving half a million properties in the dark.
Rainfall was also significant across the region. Brisbane recorded its wettest day in 50 years, with 275 mm of rain falling overnight on March 10. Hervey Bay experienced its heaviest daily rainfall in seven decades, while Nambour saw its highest March rainfall in over a century.
Local governments in Queensland and New South Wales declared disaster zones as Alfred approached. Many of these regions had been affected by previous floods, amplifying concerns about the increasing frequency of severe weather events and their cumulative financial and social impacts.
The ICA declared the cyclone an “insurance catastrophe,” with the total cost of damage expected to reach billions of dollars. Analysts warn that rebuilding costs could influence inflation and contribute to rising insurance premiums, particularly in high-risk regions.
Alongside concerns about storm damage, recent reports indicate that many Australian households may be underinsured or entirely uninsured, leaving them financially vulnerable in the event of extreme weather.
A survey conducted by Compare the Market in July 2024 found that 20.1% of respondents did not have home or contents insurance. Another 33.1% reported only partial coverage, while just 42% indicated that all their valuables were insured.
A separate study by Finder, conducted in November 2024, found that 69% of insured homeowners had experienced premium increases over the past year. The study estimates that roughly 6.4 million households faced higher insurance costs, while 9% of respondents were uncertain about changes to their premiums.
As the financial burden of extreme weather events grows, insurance affordability is emerging as a pressing issue. Industry experts warn that premiums may continue to rise, particularly for properties in disaster-prone areas, potentially leaving more homeowners without sufficient coverage.
