Market loss due to Cyclone Debbie estimated at $1,658m

Market loss due to Cyclone Debbie estimated at $1,658m

Market loss due to Cyclone Debbie estimated at $1,658m An independent organisation that provides catastrophe insurance data has announced its latest loss estimates for Cyclone Debbie, which hit Queensland and NSW in late March.

According to Zurich-based PERILS, the revised estimate of the property insurance market loss is $1,658 million, compared to the $1,411 million second loss estimate issued in June.
In a statement, PERILS said this is the first time that a market loss footprint from an Australian catastrophe event is available at a postcode level and by property line of business. The data has also been divided between those losses classified as 'cyclone' and those classified as 'flood.'

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PERILS combined the loss footprint information with postcode-level gust-speed values from the European Centre for Medium-Range Weather Forecasts and Risk Frontiers, postcode-level rain intensity measures from the Australian Bureau of Meteorology, and PERILS market sums insured, to enable users to derive damage degree functions as a percentage of total sum insured (TSI). It also allows them to validate vulnerability functions in probabilistic cat models with actual, high-quality, and independent market data, among other uses.

“We are very happy to be able to make available loss data for Tropical Cyclone Debbie at such a granular level, particularly given the significance of this event for the Australian insurance market,” said Darryl Pidcock, head of PERILS Asia-Pacific. “The loss footprint has been produced by collecting detailed loss data from insurance companies active in Australia. We are very grateful for their support, particularly as the preparation of detailed loss information requires significant effort on their part, and remain fully committed to repaying that effort through the provision of high-quality industry data.”

The fourth loss estimate for Cyclone Debbie will be released on March 28.

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