Zurich-based catastrophe insurance data provider PERILS AG has issued its initial industry loss estimate for Cyclone Alfred, placing the total insurance market loss at AUD 2.568 billion.
For those unaware, Cyclone Alfred impacted the Australian states of Queensland and New South Wales between 28 February and 12 March 2025.
Although the system’s wind intensity weakened before landfall, it transported significant tropical moisture into Southeast Queensland and northeastern New South Wales.
As per PERILS, the cyclone’s slow movement, combined with the inland topography, intensified rainfall, resulting in torrential downpours, exceptional 24-hour precipitation totals, and widespread riverine and flash flooding.
“Cyclone Alfred left over 300,000 homes and businesses without power and caused severe damage to the beaches on the Gold Coast and Sunshine Coast. There was one fatality and major disruption to transport, including the suspension of flights and closure of schools,” the catastrophe insurance data provider said.
PERILS stated that the AUD 2.568 billion loss estimate is based on data collected from affected insurers.
In line with PERILS’ coverage definition for Australia, this figure includes losses from the property and motor hull lines of business.
Darryl Pidcock, Head of Asia Pacific & Cyber at PERILS, commented, “It has been over 50 years since a cyclone travelled so far south to make landfall at the Gold Coast and its surrounding regions, the last cyclone being Wanda in 1974.
“Losses were caused by a mix of wind and protracted heavy rain-related damage, including a high volume of claims from food spoilage due to the power outages, water ingress and storm surge property damage and some flood-related losses.
“In some respects, this event has features similar to a severe convective storm with strong winds and intense rainfall, albeit over an extended period. In terms of historical loss events, Cyclone Alfred is the largest cyclone loss event on an as-if-today basis to impact the Australian insurance industry since Cyclone Tracy in 1974.”
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