Queensland-based insurer RACQ has already paid out over $100 million in claims related to the catastrophic flooding in southeast Queensland early this year.
The latest figure is a dramatic jump from the $36 million RACQ had paid out in claim payments in May 2022. Of the more than $100 million in total payments, $84.5 million has been paid out as cash settlements and $14.3 million in supplier payments.
Now, the insurer is finalising 90% of the 2,667 car insurance claims it had received so far from the costliest flood in Australia's history.
“We're processing claims as quickly as possible to help members get back on the road following one of the largest flooding events in Australia’s history,” said Trent Sayers, general manager of claims at RACQ. “RACQ flood-affected car owners can also take advantage of our exclusive agreement with dealerships including Eagers, Autopact, and Motorama, making the search for a replacement vehicle a little easier.”
RACQ has also completed 83.7% of home assessments for flood-affected properties and either completed or is still processing nearly 5,000 home repairs.
“We have more than 2,500 builders and other personnel working on claims; however, the sheer volume of claims, as well as the significant strain on labour and materials prior to this event, mean it's going to take longer than usual for repairs to be completed,” Sayers said. “The building boom and COVID have contributed to driving up demand for trades and materials, and this extends wait times and increases costs. Overall, construction material costs have risen around 20% in the past two years, with steel prices jumping 60% since 2020.”
Considering the extended wait times and increased costs, RACQ's assessors are prioritising vulnerable members of the community while builders process the scope of works and proceed with repairs.
“We understand this is a challenging time, and we're committed to being there for impacted members during this process, as well as continuing to serve those with existing insurance claims outside of the flood event,” Sayers said.