Zurich-based catastrophe insurance data provider PERILS has released its fourth and final insurance industry loss estimate for the Australia Christmas storms which impacted the the states of Victoria, New South Wales, and Queensland during the period of 23 – 29 December 2023, lifting the figure to AU $1.606 billion.
PERILS first estimate given in February was for the event to cost insurance and reinsurance interests AU $1.395 billion.In April, it was then raised to AU $1.547 billion, and then in July, PERILS raised it again to just over AU $1.56 billion.
PERILS has revealed that property insurance losses represent 89% of the total industry loss, while 11% of the total loss stems from the motor line of business.
In addition, 70% of the insured losses came from Queensland, 26% from New South Wales, and 4% from Victoria.
The Australia Christmas storms struck these states and the severe convective storm activity saw large hail, intense winds, flash floods, and tornadoes, which were driven by the clash of a lowpressure system and its associated cold front with hot, humid, and unstable air masses.
PERILS noted that the state of Queensland experienced the worst of the storm activity.
Darryl Pidcock, Head of Asia Pacific, commented: “Globally the insurance industry has been experiencing a higher frequency of convective storm activity. Whilst historically we have observed similar patterns in Australia, during the last couple of years major convective storm-related losses have been comparatively lower than previous years. Notwithstanding, this event reminds us of the potential during the current summer season for considerable losses to be caused by convective storms over an extended period, especially along the East Coast.”
Adding: “This final loss report provides considerable depth of loss information at postcode level including hail, wind and rainfall intensities. We remain ever grateful for our insurance partners’ support in sharing such important data.”
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