Major insurer IAG reveals estimated storm claim cost

Major insurer IAG reveals estimated storm claim cost | Insurance Business

Major insurer IAG reveals estimated storm claim cost
IAG has estimated that it expects to be hit with pre-tax claims cost in the range of $60 million to $80 million following the east coast low that hit several states this week.

The insurer offered an update as a catastrophe was declared by the Insurance Council of Australia (ICA) which originally encompasses New South Wales and Queensland before being extended to include parts of Victoria and Tasmania.

The insurer also noted that, as of yesterday, they had received approximately 10, 000 claims from customers across the affected areas.

“IAG’s immediate focus has been to help customers affected by the storms as quickly as possible,” IAG said in a statement.

“Additional employees have been allocated to call centres and proactive contact of customers in affected areas is helping to reduce waiting times. Customers can also lodge claims online.”

The insurer noted that their figures thus far are still an estimate and gave an update on their expectation on natural peril losses over the full year.

“While there remains a degree of uncertainty as to the ultimate outcome, IAG’s current expectation is that this event will result in a pre-tax net claim cost in the range of $60-$80 million.

“Incorporating the estimate for this event, IAG currently expects net natural peril claim cost for the financial year ending 30 June 2016 (FY16) will approximate its $600 million perils allowance.”