Swiss Re Insurance-Linked Fund Management

Original Risk: A Society for Change Agents

Australian 2022 flood industry loss costs rise to AU $4.3bn


Based on an estimate of claims incurred, the Insurance Council of Australia now puts the 2022 severe flooding in the country as the fourth most costly natural disaster event on-record, at AU $4.3 billion.

brisbane-flood-insuranceThe last figure from the Insurance Council of Australia was for an estimate of insured losses from Australia’s 2022 severe flooding of AU $3.35 billion.

Now, the ICA’s industry loss figure has risen above that of PERILS AG’s initial estimate of the insurance and reinsurance market loss, which put it at close to AU $4 billion.

The ICA has now counted 216,465 claims across both South-East Queensland and Northern New South Wales from the flooding that struck Australia in February and March 2022.

The total is now more almost double that of the 2011 Brisbane flood, which saw a $2.3 billion hit to the insurance and reinsurance market.

The 2022 Australian flooding now falls fourth in the list of natural disaster insured losses in Australia, behind only Cyclone Dinah (1967, $4.69 billion), Cyclone Tracey (1974, $5.04 billion) and Eastern Sydney Hailstorm (1999, $5.57 billion).

The ICA said that a 28% increase in estimated claims cost since the last update is due to the claims assessment process progressing and commercial claims having risen, which are typically slower to come through and have a greater cost per claim.

More than 20 per cent of claims from the flooding have already been closed and almost $1 billion paid out to policyholders, the ICA said.

As we’ve previously reported, Australian insurers IAG, Suncorp and Youi are making claims and recoveries under aggregate reinsurance towers for the flood catastrophe.

Reinsurance capital sources are expected to bear the brunt of these flood losses, according to rating agency AM Best.

Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.