Brisbane storm insurance bill soars to AU$482m

Brisbane storm insurance bill soars to AU$482m | Insurance Business

Brisbane storm insurance bill soars to AU$482m
The Insurance Council of Australia has so far estimated 17,509 home claims and 51,472 car claims lodged worth an estimated $482 million in insured losses.

While authorities have described it as the biggest storm event for insurance companies in more than 30 years, some companies were having to tap into their reinsurance and re-issue their profit targets.

Suncorp Group said it had received approximately 24,500 home, motor and commercial claims with most relating to damaged motor vehicles insured under its brands Suncorp, AAMI, Apia and Vero.

In a statement to the market the company said: “Suncorp has a comprehensive reinsurance program and a 30% proportional quota share arrangement covering the Queensland home portfolio limiting the financial impact of natural hazard events to a maximum of $250 million.

“The number of claims is expected to increase and although it is too early to accurately estimate the final claims cost for the event, Suncorp expect it to reach the maximum financial impact of $250 million.”

Suncorp Group CEO Patrick Snowball said: “The scale we have built and processes we use to respond to these weather events will help ensure the best customer experiences under the circumstances.”

IAG businesses had so far received around 15,300 claims arising from the storm.

Most were from personal insurance customers holding policies with NRMA Insurance, CGU, Lumley Insurance, WFI or Coles Insurance with more than 12,000 claims resulting from hail damage to motor vehicles.

“The Group’s current expectation is that this event will result in a net claims cost of between $140 million and $170 million,” the company said in a release to the market.

IAG’s natural peril allowance for the financial year ending 30 June 2015 is $700 million.

A reinsurance cover provides protection of $150 milion in excess of $700 million for FY15 natural perils, the statement said.

Calliden Group announced that while it had only received 113 claims so far, it estimated the final cost of the storm after reinsurance recoveries would reduce the 2014 profit target provided to the market last month by between $2.0 and $2.8 million.

It did not result in a ‘Target Material Adverse Change’ however.