Insurers declare eastern Australian flooding a catastrophe: ICA

The Insurance Council of Australia (ICA) has declared a catastrophe for property losses caused by storms and flooding along the east coast since February 5, 2020. This is the sixth catastrophe declared in the past five months.

ICA said that insurers have received 10,000 claims estimated at A$45 million ($30 million), most of which are for property damage caused by storm runoff, flooding, strong winds and heavy rain.

"Insurers expect a large number of claims will be lodged over the next 48 hours as property owners inspect the damage to homes and businesses and contact their insurers," said ICA head of risk and operations Karl Sullivan. "It’s likely many householders are unable to contact their insurers due to telecommunications and power interruptions, but insurers are standing by to help. So far most of the claims are from south-east Queensland and along New South Wales coastal regions, but damage has also been reported several hundred kilometres inland and in the ACT.

Sullivan explained: "The Catastrophe declaration means claims will be given priority by insurers. The Insurance Council is operating its disaster hotline 1800 734 621 to provide guidance to affected property owners. This is not a claims lodgement line. Insurers are also monitoring the extent of insured damage in Western Australia's Pilbara region following Cyclone Damien over the weekend."

In September, bushfires in New South Wales (NSW) and Queensland resulted in 497 claims worth $37 million; October's Rappville NSW bushfires led to 255 claims and insured losses of A$19 million; and more than 20,000 claims worth A$1.65 billion have been lodged for the November to February bushfires that affected Queensland, NSW, Victoria and South Australia. The ICA also declared Catastrophes for hailstorms in November (SE Queensland, 22,000 claims, A$166 million) and January (ACT, Victoria and NSW, 69,850 claims worth A$638 million).