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.
The 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.