Australian 2018 hailstorm insurance losses rise again to A$1.2bn, says ICA

Insurance losses from a hailstorm that hit suburban Sydney and regional communities in New South Wales on 20 December 2018 have grown to A$1.271 billion (US$915 million), the latest figures from the Insurance Council of Australia (ICA) have revealed.

In January 2019, the ICA estimated insurance losses at A$871.34 million (US$623.59 million), but added that claims were still being lodged. Then in March the figure was revised up to A$1.189 billion (US$851 million).

Property damage claims focused on roofs, guttering and walls, as well as consequential internal water damage.

The hailstorm was the first of three Australian summer catastrophes declared by the ICA. Insurance losses from the flood that affected Townsville in February are calculated to be A$1.132 billion (US$810.27 million) from 27,355 claims, while the Bunyip bushfires in late February have led to A$19.6 million (US$14 million) in insurance losses from 365 claims.

ICA said that close to half of the 136,424 insurance claims made for hailstorm damage have already been resolved. Almost 50 percent of 30,738 residential building claims have been completed, and more than 41 percent of 94,822 motor vehicle claims have also been closed, it said.

Campbell Fuller, ICA general manager communications and media relations, said: “Insurers have made rapid progress over the past 17 weeks to get families back into their homes and motorists back on the roads, despite the enormous pressure on builders, tradespeople and smash repairers.

“Sydney was hit by several severe early summer storms, which had put the motor vehicle and home building repair supply chains under pressure before the December 20 storm hit.

“Insurers are focused on working with property owners to agree on scopes of works, particularly for repairable roofs, in line with their policies. The industry has been harnessing available repairers, tradespeople and builders who are qualified, reputable and competitive, to undertake and complete outstanding work.”

Fuller added: “The ICA is pleased Berowra MP Julian Leeser and Hornsby MP Matt Kean have escalated 17 claims where policyholders have raised concerns, and these are being addressed by insurers.”