Australia’s Valentine’s Day severe storm estimated to cost insurers $104m

The latest bout of severe and convective weather that affected the Victoria region of Australia back on Valentine’s Day in February, is now estimated to have cost the insurance sector around $104 million, so far.

The Insurance Council of Australia (ICA) had designated the severe storm a ‘Significant Event’ last month, saying almost 10,000 claims had already been received.

This storm resulted in around 530,000 homes being left without power across the state of Victoria.

Torrential rain and gale-force winds impacted the region, with significant damage to property as a result.

Now, the ICA has updated the claims total, saying that almost 20,000 have now been lodged for this Valentine’s Day storm event.

Roughly 85% of the insurance claims that came in were related to home and contents damage, reflecting the heavy rainfall, flooding, and strong winds experienced across the region, the ICA said today.

As of today, the estimated cost of the storm has reached $104 million, but the insurance industry is making steady progress in settling them.

9,170 claims for damaged contents totalling $10 million have been lodged, with nearly 30 per cent already closed, the ICA said.

ICA CEO Andrew Hall commented, “These storms caused extensive damage across Victoria and show us just how quickly and unexpectedly extreme weather events can occur.

“The significant number of claims reflects the severity of the event, and insurers are working hard to support customers impacted by this event.

“The declaration of a ‘Significant Event’ prioritises claims for insurers and will assist impacted Victorians getting back on their feet.”

Recently, the Insurance Council of Australia (ICA) reported that insurance market losses from severe storms and catastrophe events that affected Australia over the summer had reached $1.2 billion.