$3.37b losses in Eastern Australia floods to challenge insurers
The initial assessment of losses was $2.75b in April.
The complexity and volume of claims caused by the Eastern Australia flood early this year are posing a significant challenge to the insurance industry according to Zurich-based firm PERILS.
Heavy rainfall from 20 February to 11 March 2022 caused significant damages to property in what many are calling the Eastern Australia floods. The rainfall amounts exceeded historical records in some areas, especially in the South-East Queensland and Northern New South Wales regions.
In PERILS initial estimate in April, losses were recorded to have reached $2.75b. In its recently published second assessment, losses climbed to $3.37b. The loss estimate includes losses from the property and motor hull lines of business and is based on loss data collected from the majority of the Australian insurance market.
“The complexity and volume of claims caused by this weather event are presenting significant challenges to the insurance industry which is reflected in the increase in PERILS’ second loss estimate. A key driver is claims inflation due to rising labour and supply costs which has become a critical issue for the industry,” Darryl Pidcock, Head of PERILS Asia-Pacific said.
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