The insurance industry losses from the recent east coast low pressure storm system that affected the New South Wales Australia region, particularly Sydney area, have risen by another 21% to now reach AUD$295m, according to the ICA.
Today’s check on the tally of claims has seen another rise, to 41,500 reported claims and AUD$295m of insurance industry losses estimated by the Insurance Council of Australia.
Initially the total was reported on the 22nd April as AUD$129m. On the 23rd April the figure was increased to AUD$161m. Then again on the 24th, to AUD$201m. And on the 27th April the ICA now reported a jump of 21% in the insurance industry loss estimate to AUD$244m from 34,950 claims registered.
Now the tally has risen by another 21% to this new total of AUD$295m.
Analysts at Deutsche Bank have estimated the impact to Australian insurance group IAG alone at AUD$65m. The analysts said the estimates could rise significantly over coming days and that they expect IAG to call on its reinsurance coverage to assist with payments once the full claims total is known.
If that’s the case then this loss is getting closer to the layers where collateralized reinsurance and ILS funds may become exposed.
Further rises are considered likely in the coming days and weeks as the full extent of damages are assessed.