PERILS finalises industry loss estimate for Australia east coast SCS at AU $1.62bn

Catastrophe data aggregator PERILS AG has published a fourth and final industry loss estimate for the Australia East Coast Severe Convective Storms (SCS) which affected the states of Queensland, New South Wales and Victoria in late October 2025, placing the insurance market loss at AU $1.62 billion, an 8% increase from the firm’s third loss estimate.

Between October 26th and November 1st, 2025, Eastern Australia experienced an extended period of severe thunderstorms, with the most significant event impacting the greater Brisbane region in South East Queensland on October 26th.

At the same time, a severe tornado caused extensive damage in Melbourne’s western suburbs on the same day.

After a brief lull, another outbreak of severe storms struck South East Queensland as well as parts of northern New South Wales between October 31st and November 1st, 2025.

PERILS’ initial loss estimate for this event was AU $1.108 billion, reported in December 2025. Then in February, the firm increased its industry loss estimate by 37% to AU $1.512 billion.

Then in April, PERILS slightly lowered its insurance industry loss estimate for the event to AU $1.501 billion.

Now, the final industry loss estimate for the event has increased by roughly 8% from the third loss estimate to AU $1.62 billion, PERILS has reported today.

PERILS’ loss estimate is based on detailed loss data by postcode and property and motor hull lines of business collected from the majority of the Australian insurance market.

According to PERILS, property losses contributed a staggering 87% of the total industry loss, while 13% were due to motor losses.

The event predominantly impacted the state of Queensland, which experienced 94% of the total industry loss, while New South Wales and Victoria contributed 4.5% and 1.5%, respectively.

Darryl Pidcock, Head of Asia Pacific & Cyber at PERILS, commented: “As Australia experiences the peak storm season, this event is a reminder of the widespread damage that severe convective storms can cause, especially along the east coast of Australia.

“We continue to observe various factors driving industry losses such as an increase in vulnerable assets, especially with the growth of solar panel installations in Australia, and the impact of a warming climate. Australia is currently experiencing El Niño conditions which typically bring drier and hotter conditions to eastern Australia. Notwithstanding, the threat of convective storm activity is still very real as recent storm and flash flooding activity reminds us, especially during spring into early summer.”

Pidcock continued: “We have observed more modest loss development in the last six months as insurers settled claims, with an 8% increase since our previous loss report, which is within expectations for this type of event. We would like to thank our insurance partners for their continued support providing timely and quality data.”