Insurers face $1b in claims
The Bureau of Meteorology issued a severe thunderstorm warning with a risk of flash flooding on Sunday for residents of the Hunter, South Coast, Northern Tablelands and parts of the Northern Rivers districts of NSW.
It came less than 24 hours after severe winds and rain hit hundreds of homes across Sydney and the Illawarra region, leaving towns in eastern NSW battling floodwater.
The latest figures from the insurance industry show claims for NSW, Queensland and Tasmania have jumped $150 million in the past two weeks, pushing the total value of insurance claims this summer above $830 million.
Figures from the Insurance Council of Australia show losses in Queensland have climbed to $661.3 million this year, with flood-related losses in NSW of $71.8 million. Tasmanian bushfire claims have risen to $87.1 million.
Insurers said they were expecting the total value of losses to grow in coming weeks, but it was too early to know how many fresh claims would be made after the weekend.
"It's not unusual for [claims] figures to balloon more than a week after [an] actual event," Campbell Fuller, Insurance Council spokesman, said. "We're not due to get some more figures until the end of this week."
The severe weather comes as QBE Insurance prepares to publish full-year earnings this week.
Last week, two of the country's biggest insurers - Suncorp and Insurance Australia Group - posted huge rises in six-month profit.
Suncorp saw net profit jump by nearly half, to $574 million, while IAG profits more than tripled to $461 million.
Insurance analysts said IAG's profit margin, which rose from 7.7 per cent to 19.2 per cent, was higher than they had ever seen.
It came in the same week that IAG, the group behind the NRMA, RACV and CGU brands, said its home and car premiums could rise by 5 per cent to 10 per cent this year.
Frequently Asked Questions about this Article…
Heavy rains and severe storms across large parts of New South Wales have added billions of litres of water to already swollen rivers, triggering flood and storm damage. Insurers say claims have already jumped and the total losses are expected to grow in the coming weeks, making it likely claims will top $1 billion this summer.
The Bureau of Meteorology issued severe thunderstorm warnings for the Hunter, South Coast, Northern Tablelands and parts of the Northern Rivers in NSW after strong winds and rain hit Sydney and the Illawarra. Flood-related losses in NSW, large losses in Queensland and Tasmanian bushfire claims are all contributing to the rise in insurance claims.
Industry figures show claims for NSW, Queensland and Tasmania rose by $150 million in the past two weeks, pushing the total value of insurance claims this summer above $830 million so far.
The Insurance Council of Australia reported Queensland losses have climbed to $661.3 million this year, flood-related losses in NSW are $71.8 million, and Tasmanian bushfire claims have risen to $87.1 million.
Insurance Council spokesman Campbell Fuller said it's not unusual for claims figures to balloon more than a week after an event, and the industry expects more updated figures (the next batch due at the end of the week) as new claims are lodged and assessed.
QBE Insurance is preparing to publish full‑year earnings this week. Despite the recent weather, two big insurers—Suncorp and Insurance Australia Group (IAG)—reported strong six‑month profits: Suncorp's net profit rose nearly 50% to $574 million, while IAG's profit more than tripled to $461 million and its profit margin jumped from 7.7% to 19.2%.
Yes. IAG has warned that home and car premiums could rise by 5% to 10% this year, signalling potential premium increases for policyholders as insurers respond to higher claims and loss costs.
Watch upcoming insurer reporting (QBE's full‑year results this week and regular updates from Suncorp and IAG), updated Insurance Council of Australia loss figures (next set due end of the week), and any guidance on claims growth or premium adjustments—these items will affect insurer profitability and stock performance.
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