ICA declares insurance catastrophe for severe SA storms

The Insurance Council of Australia (ICA) has declared an insurance catastrophe for some parts of South Australia (SA) devastated by significant hail, rain, and strong winds last week.

Thousands of Victorians and South Australians lost power due to thunderstorms and strong winds, with Victoria’s State Emergency Service reportedly receiving over 950 calls for help in the 24 hours to 7:30am last Friday, according to The Guardian.

Meanwhile, a report from News.com.au emphasised the impact of strong winds last week as NSW Fire and Rescue reported receiving a call around 4:30pm during the same day to a unit block on Sutherland St in Paddington where strong winds were believed to have ripped a large window pane out of an apartment.

As of October 29, insurers had received more than 12,000 claims, and the number is expected to rise over the coming days.

As a result, the ICA has declared an insurance catastrophe for the extreme weather event, which means:

• Insurers will prioritise claims from affected policyholders;
• Claims will be triaged to direct urgent assistance to the worst-affected property owners;
• The ICA activated its disaster hotline (1300 728 228) to assist policyholders if they are uncertain of their insurance details or have general inquiries about the claims process;
• The ICA will deploy representatives to work with local agencies and services and affected policyholders as soon as emergency services say it is safe to do so;
• Insurers will mobilise disaster response specialists to assist affected customers with claims and assessments as soon as emergency services say it is safe to do so; and
• An industry taskforce will identify and address issues arising from this catastrophe.

Read more: Insurance Council releases update on Halloween hailstorm claims

So far, most claims have come from Barossa Valley, Elizabeth, the Adelaide Hills, Salisbury, Craigmore, and surrounding areas. Motor vehicle claims accounted for two-thirds of those currently lodged, while claims from crop losses from the Barossa Valley region are expected to be substantial.

Under SA’s current border regime, insurance disaster responders would be subject to several restrictions, including prohibited entry altogether or having to quarantine for 14 days.

With insurers preparing to deploy up to 80 specialist assessment and recovery personnel from interstate, the ICA is engaging with the SA government to allow essential personnel to enter SA to operate and support impacted communities in their recovery.

ICA CEO Andre Hall encourages those impacted by the storm to ensure they do not undertake any activity that may put their safety at risk.

He added: “The insurance industry typically mobilises hundreds of staff from other jurisdictions to areas impacted by a natural disaster to assess damage and commence repairs and recovery.

“Families, businesses, and communities rely on insurance disaster responders from interstate in the aftermath of severe weather events – without them, recovery is delayed with significant personal, social, and economic impacts.”