PERILS reveals final insured loss for January 2020 hailstorms

PERILS reveals final insured loss for January 2020 hailstorms | Insurance Business

PERILS reveals final insured loss for January 2020 hailstorms

PERILS has revealed that the hailstorms that battered Australia in January 2020 have resulted in insured losses of $1,887 million, a small increase from the third loss estimate of $1,811 million issued by the organisation on July 21.

The figure was based on detailed loss data collected from the majority of the Australian insurance market. It covers the hailstorms that occurred from January 19 to 21, 2020, and devastated the Australian Capital Territory (ACT), New South Wales (NSW), Queensland, and Victoria.

According to PERILS, Canberra experienced the most significant impact, which reported hailstones up to six centimetres in size. Meanwhile, the ACT faced the most severe insurance losses, which accounted for 56% of the overall industry loss. It was followed by Victoria (25%), NSW (15%), and Queensland (4%).

The report also revealed that motor losses contributed 42% of the total industry loss, while property lines of business contributed 58%.

Darryl Pidcock, the head of PERILS Asia-Pacific, commented: “This release is the final report for one of the largest Australian hailstorm events in the last 30 years. Given its impact on the industry, we are convinced that the detailed industry loss footprint we have provided today will contribute to a better understanding of hail risk in Australia.

“The need for detailed loss and exposure data for hail was further highlighted by the two significant hail events in Queensland that occurred later in the year. Together with the January event, these hailstorms have generated more than $3.5 billion in losses for the insurance industry in 2020.”