PERILS raises Queensland & New South Wales SCS losses 11% to AU $2.95bn

Catastrophe data aggregator PERILS has updated its estimate of insurance industry losses for the severe convective storms (SCS) that hit Queensland and New South Wales between November 21st to 27th 2025, lifting the total almost 11% to AU $2.95 billion.

PERILS published its initial insurance industry loss estimate for these severe convective storms back in January, putting the total at AU $2.663 billion.

With claims having continued to be filed, the total has risen considerably now, increasing roughly 11% to AU $2.95 billion for the second industry loss estimate.

PERILS noted that its loss estimate is based on data gathered from impacted insurers, including losses from property and motor hull lines of business.

In late November 2025, the east coast of Australia was impacted by severe convective storms, which brought hail, damaging wind gusts, and intense downpours impacting a large region, stretching from Brisbane in South East Queensland to Sydney in New South Wales.

“The largest outbreak occurred in the afternoon and early evening of 24 November, affecting South East Queensland with hailstones as large as 14 cm in diameter, approximately the size of a grapefruit. The wild weather caused widespread damage to insured property and disrupted the power supply to 160,000 homes and businesses,” PERILS explained.

As we previously covered, the Insurance Council of Australia had recorded rising claims from this severe weather event, with hail a major driver of losses.

As well as this, Australian primary insurer Suncorp Group previously revealed that it expected to tap into reinsurance support for its claims from this severe weather outbreak.

PERILS also confirmed that an updated estimate of the insurance market loss from the event will be published on May 27th, 2026, six months after the event end date.

Darryl Pidcock, Head of Asia Pacific & Cyber at PERILS, commented: “Australia has so far experienced two impactful periods of severe convective storm activity in the 2025/26 SCS season.

“The first occurred in late October 2025, and we currently estimate its industry loss at AUD 1,512 million. The second occurred in late November and at AUS 2,950 million was significantly larger. The combined loss total, three months after the respective event end dates, is AUD 4,462 million.

“It is possible that this amount will increase further. These events illustrate once again the significance of SCS as a major peril for the Australian insurance industry.”