Insured losses for summer catastrophes revealed

Insured losses for summer catastrophes revealed | Insurance Business

Insured losses for summer catastrophes revealed
The catastrophes that rocked Australia this summer have been revealed to have an insured losses bill of $515 million.

The Insurance Council of Australia revealed the hefty sum following four catastrophes across the country in the past seven weeks.

Bushfires in South Australia, Victoria and Western Australia, alongside the tornado that struck Sydney in December, have seen the toll continue to rise as ICA CEO, Rob Whelan said insurers face a heavy bill.

“We’ve only just reached the midpoint of summer. Insurers are paying out more than $1.3 million each working day in repairs, building works, settlements and assistance to policyholders just for these four disasters,” Whelan said.

“That figure doesn’t include the losses from many other smaller events, including recent flood and storm damage in parts of Sydney and the Hunter region.”

Updated figures reveal that the Pinery bushfires in South Australia have incurred $170 million in insured losses from 1991 claims with commercial losses accounting for 73% of the total insurance bill.

The Victorian bushfires which struck the Great Ocean Road region on Christmas Day have resulted in $86 million of insured losses from 482 claims, 185 of which were residential building claims.

The Yarloop bushfires in WA produced 616 claims with insured losses over $57 million and the Sydney tornado saw insurers receive 4282 claims with insured losses passing $202 million with 72% of insured losses commercial.

Whelan noted that claims continue to arise from each of the four catastrophes and said that he doesn’t expect customers to face a hike in premiums following a summer to forget.

“Insurers anticipated the potential for a destructive summer, and the losses are within their expectations,” Whelan said.

“These catastrophes highlight the importance of homeowners and businesses making sure they have adequate insurance for their homes and treasured possessions.

“With building costs rising all the time, it’s vital to make sure property owners review and update their cover regularly to avoid being left underinsured and facing hefty bills.”