According to new data from the Insurance Council of Australia (ICA), extreme weather events have resulted in almost $3.5 billion in insured losses from 264,000 claims in 2025.
Of these losses, the costliest was Ex-Tropical Cyclone Alfred, which accounted for 132,000 claims and more than $1.5 billion in insured losses.
Severe hailstorms over five weeks in October and November left similar damage bills as Alfred. Last year saw five events declared significant or catastrophic by the Insurance Council. These include the North Queensland Floods in February, Ex-Tropical Cyclone Alfred in March, the Mid North Coast floods in May, and two severe storm events in October and November.
The Severe Spring Storms, which impacted South-East Queensland and Northern NSW from the end of October through to early November, resulted in insured losses of $601 million across 35,500 claims.
In late November, more severe storms and hail impacted the two states, adding 70,200 claims and $814 million in insured losses. Together, losses from the two events totalled $1.4 billion.
The January North Queensland floods incurred losses of $304 million from 11,700 claims, while the Mid North Coast and Hunter floods in May added 14,500 claims and $266 million in losses.
According to the ICA, other, more locally severe events included flooding in Western Queensland, storms in Casterton and Harden, and bushfires in Halls Gap. Since the events were smaller, they are not counted in the data published.
Insurers expect further claims will be made from these events, meaning the eventual cost of extreme weather in 2025 will grow, explained the council.
For comparison, insured losses from extreme weather events in 2024 totalled $581 million and from 2023 totalled $2.35 billion. To support communities in their recovery throughout 2025, the ICA coordinated three insurance hubs in the immediate aftermath of events and 13 community consultation sessions.
The first few weeks of 2026 have also seen significant extreme weather activity, from bushfires in Victoria to monsoonal weather in North Queensland.
Insurers are prioritising claims from these events and are supporting communities in their recovery, with many insurers maintaining a strong on-the-ground presence across parts of Victoria, explained the ICA.
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