Swiss Re Insurance-Linked Fund Management

Xactanalysis Insights and PCS

Cyclone Debbie insurance losses jump to $660m


Insurance and reinsurance losses due to the estimated claims totals reported for tropical cyclone Debbie have risen much further across Queensland and New South Wales, Australia, hitting A$660 million from 41,105 claims as of this morning.

Cyclone Debbie satellite image via USA TodayThe Insurance Council of Australia (ICA) said early today that 41,105 claims have now been reported across the Queensland and northern New South Wales regions, with the resulting industry loss now estimated to cost the insurance and reinsurance industry of AU$660 million (almost US$500m).

The expectation remains that this figure will rise further, as claims continue to be filed and losses due to flooding always take much longer to calculate. It’s still early days in tallying cyclone Debbie’s true impact on insurance and reinsurance markets and so the total could easily rise to the A$1 billion level or higher.

As of the 6th April the figure sat at A$410 million from 35,370 claims, so the total has increased by 61% in just five days, to reach the A$660 million level.

Our market sources continue to suggest that the eventual insurance and reinsurance loss from cyclone Debbie’s impacts to Australia will be in the range of AU$1 billion up to 2011’s cyclone Yasi at AU$1.4 billion.

Sources have also told us that at least one collateralized reinsurance arrangement has been notified of the potential for losses, which we’re told is from an ILS fund manager’s participation in an Australian primary insurer’s reinsurance program.

Also read:

IAG taps into reinsurance as Cyclone Debbie claims continue to rise.

Tropical cyclone Debbie claims hit $306m.

Cyclone Debbie industry loss seen close to Yasi levels (AU$1.4bn).

Cyclone Debbie strikes Queensland, threat woke up live cat market.

Suncorp expects to call on aggregate reinsurance for cyclone Debbie

Join Artemis in Singapore on July 13th 2017 for ILS Asia
ILS Asia 2017

Register today for ILS NYC 2023, our next insurance-linked securities (ILS) market conference. Held in New York City, February 10th, 2023.

Artemis London 2022 - Insurance-linked securities conference in London

Get a ticket soon to ensure you can attend. Secure your place at the event here!

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.