Australian insurers have seen significant increases in claim numbers in the aftermath of tropical cyclone Alfred, but it is still too early to determine the total damage or how it will affect insurance premiums.
Insurers received more than 34,000 claims related to Alfred across southeast Queensland and northern New South Wales by midday on March 12, according to the Insurance Council of Australia (ICA). This is an increase of more than 50% from about 22,000 claims the day before.
Claim types varied across regions, the ICA said. Some customers in localized areas lodging flood claims, while several thousand customers across Alfred's path submitted claims related to storm-driven water damage and food spoilage due to power outages.
There were initial concerns the cyclone would result in a significant number of severe wind damage claims before Alfred made landfall, but insurers reported that such concerns have not been realized.
Suncorp Group Ltd. said it received around 7,800 claims related to Alfred as of March 11. The vast majority, about 7,200 claims, were for home policies, most of which fall within the coverage period of the federal government's Cyclone Reinsurance Pool.
Separately, Insurance Australia Group Ltd. reported that over 4,000 claims related to the cyclone were lodged as of March 12. These were primarily related to property damage due to wind and water ingress.
QBE Insurance (Australia) Ltd., which has not yet disclosed claim numbers, said it activated response plans to support affected customers.
Alfred made a delayed landfall near Brisbane on March 7, becoming the first storm to cross the coastline of southeastern Queensland since 1974. The cyclone's impact was highly anticipated due to its rare nature and the concentration of exposure affected, according to Aon PLC.
Economic and insured losses from the cyclone are expected to reach "at least hundreds of millions of Australian dollars," Aon said in a March 11 event recap report.
Insurers have so far made almost A$2.4 million in emergency cash payments to about 6,000 affected policyholders. ICA said these payments were generally for food spoilage and temporary accommodation.
"It is currently too early to tell the impact that tropical cyclone Alfred will have and what the total damage bill will be," according to a spokesperson for ICA. It is also too soon to predict what impact it will have on premiums, given the "changing nature" of the weather event.
Australian Prime Minister Anthony Albanese outlined plans to provide financial support for affected communities through a disaster recovery allowance, which will offer up to 13 weeks of income support for eligible workers and sole traders who suffered a loss of income due to the event.
The federal and New South Wales governments will also provide emergency financial assistance for individuals and families across areas in the state that were severely impacted by the tropical cyclone. The personal hardship assistance grant will be paid to residents who are unable to meet immediate needs as a result of the disaster.
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