The Insurance Council of Australia (ICA) has declared an Insurance Catastrophe for the southeast Queensland and northern New South Wales regions following the impact of Tropical Cyclone Alfred and subsequent severe storms. The cyclone, which weakened before making landfall, has still caused widespread damage, including power outages, flooding and debris hazards since Friday, 28 February.
Although now classified as a tropical low, the effects of ex-Tropical Cyclone Alfred have been felt most severely in the Gold Coast, Brisbane, Hervey Bay, and the Northern Rivers. Insurers have already received nearly 3,000 claims, a number expected to rise as residents return to assess the damage.
The ICA’s declaration is aimed at streamlining the insurance industry’s response, ensuring affected policyholders receive assistance as quickly as possible. Under this declaration:
Andrew Hall (main picture), CEO of the Insurance Council of Australia, reiterated the industry's commitment to assisting affected policyholders.
“Insurers’ top priority is community safety. If you’re affected by ex-TC Alfred, stay clear of fallen powerlines and floodwaters, and avoid any activities that could put you at risk,” Hall stated.
“It’s too early to understand the extent of the damage to property in affected areas and to estimate the insurance damage bill, however insurers have received around 3,000 claims in the past two days and expect many more thousands of claims as residents return to their homes and understand the full extent of the damage,” he added.
With strong winds and heavy rains having lashed the region, residents are urged to remain cautious of electrical hazards and structural damage. Those who have been affected are advised to contact their insurers as soon as possible to begin the claims process.
Key safety recommendations include:
While the full extent of the financial impact remains unknown, previous weather events provide some context. The last major cyclone to hit Australia, Tropical Cyclone Jasper in 2023, resulted in $409 million in claims from around 10,500 policyholders. The country’s costliest cyclone, Cyclone Tracy in 1974, would amount to an estimated $7.4 billion in today’s terms. In contrast, the floods of early 2022 remain Australia’s most expensive insured disaster, with losses exceeding $6.4 billion across more than 245,000 claims.
Most standard home and contents insurance policies in Australia include coverage for cyclone-related damage, though some policyholders may have opted out of flood cover. Residents uncertain about their level of protection are encouraged to review their product disclosure statements or contact their insurers for clarification.
Flooding remains a persistent challenge across Australia, with approximately 1.36 million properties at some level of risk. Of these, nearly 300,000 homes and businesses face a two to five per cent chance of flooding each year, with 91,000 located in Queensland alone.
The ICA has consistently advocated for greater investment in mitigation strategies to protect vulnerable communities and stabilise insurance premiums. In February 2025, the ICA proposed a Federal Flood Defence Fund amounting to $30.15 billion over a decade, to be jointly funded by the Federal Government and the states of Queensland, New South Wales, and Victoria. The initiative would include new flood defence infrastructure, property resilience measures, managed relocation of at-risk homes, and upgrades to existing mitigation systems.
The long-term impact of Tropical Cyclone Alfred on insurance premiums remains uncertain. However, the increasing frequency and severity of extreme weather events have already placed upward pressure on premiums. Insurers continue to call for stronger government action to enhance community resilience and improve insurance affordability in high-risk regions.
The ICA’s declaration of an Insurance Catastrophe will allow insurers to provide streamlined support for those affected, while the full extent of the damage becomes clearer in the days ahead. Policyholders are urged to contact their insurers for assistance and begin the claims process as soon as it is safe to do so.
