PERILS cuts Oct. ’21 Southern Australian storm to A$972m in final tally

Southern Australian severe storms in late October 2021 rendered a total insurance market loss of A$972 million in property and motor lines, Swiss-based nat cat researcher  PERILS said in its fourth and final estimate on the event.

The final tally pulls the event estimate below the A$1 billion mark. A prior estimate released at the six-month mark in mid-May 2022 had put the likely figure at A$1.016 billion. The estimate is based on loss data collected from the majority of the Australian insurance market.

Motor losses contributed 40% of the total industry loss, while 60% were due to losses in property lines of business.

The Southern Australia Severe Storms of October 28 to 30, 2021 were caused by a low-pressure system moving in a south-easterly direction across the southern Australian states of South Australia, Victoria and Tasmania. The system generated a mix of hail, wind and severe thunderstorms across the three states, significantly impacting the cities of Adelaide and Melbourne.

The head of PERILS Asia-Pacific Darryl Pidcock commented: “From an Australian market perspective, this event has been somewhat overshadowed by the record February-March 2022 Eastern Australian floods. Notwithstanding, it is one of the largest insured loss events on record in Australia. This was a highly complex event with hail, wind and rainfall related losses experienced over such a wide geographic region. This detailed report includes losses by line of business, post code and physical intensities further supporting efforts by the industry to improve its understanding of these respective perils. With the La Nina meteorological phenomenon currently present for the third year in a row, the east coast of Australia continues to face uncertain weather conditions.”

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