Insurer announces $100 million storm hit

Insurer announces $100 million storm hit | Insurance Business

Insurer announces $100 million storm hit
Suncorp has revealed the full extent of the storms that rocked New South Wales a fortnight ago and the surprising cost of the hail storm that affected parts of the city on Anzac Day have officially been declared a catastrophe.

The financial impact of the storm on the insurer will be $135 million net of reinsurance while the hail storm is expected to cost between $50 million to $70 million, again net of reinsurance.

The New South Wales storm was responsible for 25,000 claims across the Suncorp brands of AAMI, GIO, Apia and Vero with damage spread from central Sydney, the Central Coast and Hunter region while the ICA has declared its fourth catastrophe of the year due to the hail storm which battered Sydney on Anzac Day.

More than 9,500 claims have been received by insurers so far with the council estimating initial losses at $63.3 million, with more claims expected.

The two weather events alongside a $150 million bill for Cyclone Marcia, have seen Suncorp’s natural hazard expenses for the financial year pegged in the “range of $940 million to $990 million.”

A further event between now and the end of the financial year will have a maximum impact of $120 million, the company said in a statement.

Suncorp CEO Patrick Snowball, said that helping customers in their time of need was the most important bottom-line for the company.

“Our teams have mobilised with people on the ground in Charlestown, Maitland and Dungog,” Snowball said.

“Additionally, we have a network of experienced assessors completing more than 400 assessments a day.

“Our focus is on processing claims quickly and providing customers the support they need. Simple things, such as not applying an excess charge to spoiled food claims or being equipped to provide emergency funds, make all the difference.

“As repair work gets underway, we continue to prioritise those customers at need.”

The Suncorp announcement comes days after IAG noted its own losses from the recent bad weather in New South Wales, revising their margin guidance following higher than expected claims.