Australian insurers have recorded nearly $1.5 billion in insured losses in the first part of 2025 following two significant weather events that have triggered more than 126,000 claims, according to new data released by the Insurance Council of Australia (ICA).
The March weather system formerly known as Tropical Cyclone Alfred has emerged as the costliest, generating over 116,000 claims worth an estimated $1.236 billion. This includes an additional 20,000 claims received in the past month, adding $267 million to the total.
The event has now surpassed the February floods in North Queensland, which accounted for nearly 11,000 claims and over $250 million in losses.
ICA data indicated that claims associated with Alfred span residential, commercial, and motor sectors. Residential property claims make up the bulk of this total, with over 104,000 lodged, while motor and commercial claims are also substantial.
In contrast, the Queensland flood event produced approximately 8,700 home insurance claims, and fewer than 350 claims have been reported from flooding in Western Queensland.
The average payout per claim differs significantly between the two events. Claims linked to the North Queensland floods average $23,000, while the average claim from Alfred is around $10,000.
ICA reported that 37% of claims tied to Alfred have been settled, totalling $146 million in disbursed payments.
Insurers have set up temporary offices in affected communities and are engaging with customers through town halls and direct consultations.
ICA CEO Andrew Hall stated that on-the-ground support continues in impacted regions.
“Rising claims numbers and closure rates are a sure sign that recovery in extreme weather impacted communities is progressing well,” he said. “To help impacted customers, insurers are heading to Hervey Bay to meet with customers impacted by ex-TC Alfred, giving them opportunity to discuss their claim one-on-one. We encourage anyone yet to make a claim relating to extreme weather damage to get in touch with their insurer.”
In parallel with the surge in insurance activity, new research into the structural impact of ex-Tropical Cyclone Alfred has prompted further examination of building resilience in storm-prone areas.
A post-event analysis by James Cook University’s Cyclone Testing Station and Natural Hazards Research Australia identified a number of structural shortcomings, despite the system weakening before making landfall.
Gusts of close to 100 km/h exposed weaknesses in building design, particularly in water resistance, external finishes, and elevated balcony features. Investigators found instances of water intrusion through closed windows, attributed to faulty seals and pressure-related vulnerabilities.
The research report offered 15 recommendations aimed at boosting resilience across buildings and emergency systems. These include improved waterproofing, more secure balcony surfaces, and material standards to prevent structural deterioration.
Recommendations also touched on emergency power reliability in high-rise buildings and upgraded window designs capable of limiting water entry during high-pressure storm conditions.
The study also highlighted the need for better site management, as unsecured materials on construction sites and balconies were identified as potential storm hazards. While the event resulted in limited physical harm, experts cautioned against complacency and called for ongoing investment in preventive measures.
