Severe Weather in Eastern Australia Sparks Insurance Claims Spike

1

The New South Wales State Emergency Service (SES) has reported over 2,500 incidents related to the severe conditions, indicating a public safety crisis. As the storms continue, the SES anticipates that the number of incidents will rise, particularly across the Mid North Coast and northeastern regions of the state.

Among the most affected areas, issues such as fallen trees, downed powerlines, and property damage have dominated the dispatch calls. Within a mere 24-hour period, more than 143,000 homes experienced power outages, showcasing the widespread impact of the storms.

Insurance companies like Allianz have already begun to respond, with more than 80 claims received as of 10 a.m. the next day. “High callout numbers from the SES typically indicate an uptick in property claims, and we’re prepared for that,” stated a company spokesperson, highlighting the industry's readiness to handle the aftermath of such severe weather events.

As the weather conditions remain volatile, further claims are anticipated in the days to come. The SES has reported tragic incidents, including the death of an elderly man in Cowra after a tree struck his vehicle, and injuries sustained by individuals in Wagga Wagga due to other storm-related hazards.

Gusts exceeding 100 kilometers per hour have been recorded at various locations, including Wagga Wagga and Sydney's Kurnell, emphasizing the extreme nature of the wind associated with these storms. Queensland has also faced its share of challenges, notably in Stanthorpe, where substantial hailstorms have wreaked havoc.

Among the hardest-hit areas identified by Suncorp are Maitland and Wagga Wagga in NSW and Stanthorpe in Queensland. “In light of the ongoing weather forecasts, we are taking steps to support our affected customers and are proactively reaching out to them,” said a Suncorp representative, underscoring the commitment of insurance providers to assist those in need during this natural disaster.

According to the Bureau of Meteorology, hailstones measuring up to 13 centimeters have been observed south of Grafton, with seven-centimeter stones reported near Kyogal later in the afternoon. A warning for large hail, damaging winds, and heavy rainfall remains in effect for parts of the Northern Rivers, Mid North Coast, and Northern Tablelands districts.

While communities begin to assess the damage and reconstruct following these storms, the impact on local economies and the insurance industry is expected to be significant. Events like these remind us of the power of nature and the importance of preparedness and responsiveness within the financial services sector.

This report captures insights from various sources, including the SES and major insurance firms such as Allianz and Suncorp, illustrating the extensive repercussions of this recent weather outbreak.

Published:Friday, 17th Jan 2025
Source: Paige Estritori

Share this news item:

Insurance News

Severe Weather in Eastern Australia Sparks Insurance Claims Spike 17 Jan 2025: Paige Estritori Recent storms sweeping across New South Wales and parts of Queensland have led to a surge in emergency calls and insurance claims, as residents grapple with the aftermath of strong winds, heavy rainfall, and hail. This extreme weather has posed significant challenges to numerous households and businesses, prompting a rallying cry for assistance. - read more

Broker Sentenced for Fraudulent Builders’ Insurance Scheme 15 Jan 2025: Paige Estritori In a significant legal crackdown, a broker has been sentenced for his involvement in selling fraudulent builders’ warranty insurance to construction firms in New South Wales. This case underscores the urgent need for regulatory vigilance in the insurance sector. - read more

LA Wildfires Set to Shatter Insurance Loss Records 14 Jan 2025: Paige Estritori Recent wildfires in Los Angeles are projected to lead to unprecedented insured losses, potentially exceeding $20 billion USD (approximately $33 billion AUD). This alarming situation underscores the escalating risks associated with natural disasters, as communities brace for the fallout from this catastrophic event. - read more

Catastrophe Bonds: The Future of Cyber Risk Management 07 Jan 2025: Paige Estritori As digital threats escalate, the financial sector is looking at innovative methods to enhance cyber risk management, with catastrophe bonds emerging as a pivotal tool. The Geneva Association emphasizes the necessity of alternative risk transfer solutions to mitigate the burgeoning cyber protection gap. - read more