Insurance Australia Group (IAG) had received around 4,300 claims as of June 15, mainly for property damage, due to the recent storms and flooding in Victoria.
The severe storms that devastated the state left tens of thousands of Australians without power or telecommunications.
IAG’s net natural peril claims costs up to May 31, 2021, were around $660 million – including the net cost of Cyclone Seroja in Western Australia in April 2021.
Following the severe storms and flooding in Victoria, and including estimated attritional peril claims costs in June, the insurance giant estimates its FY21 net natural peril claims costs to reach approximately $720 million to $743 million compared to the $658 million peril allowance for this period and previous guidance of $660 million to $700 million.
The upper end of the provided range reflects IAG’s FY21 stop-loss protection for retained natural peril claims costs, providing protection of $100 million, in excess of $1.1 billion ($68 million in excess of $743 million, post-quota share).
IAG executive general manager direct claims Luke Gallagher urged customers to ensure it is safe before returning to their properties to inspect the damage. He also reminded Australians to follow emergency authorities’ advice.
“Floodwater is extremely dangerous, so please take every precaution. We have assessors and builders on the ground ready to ensure our customers’ properties are safe and secure,” Gallagher said in a statement.
“We will contact those impacted to book in property assessments, so repairs can begin as soon as possible. We can also arrange emergency accommodation and provide immediate financial assistance for customers in need.”
The Insurance Council of Australia (ICA) has already declared an insurance catastrophe for areas impacted by the major flooding over the last few days. However, it has not yet determined the extent of the damage to affected properties.
Like IAG, Suncorp released a claims update on Victoria flooding earlier in the week – confirming that it had received around 3,750 claims as of June 14, predominantly for property damage.