The Insurance Council of Australia (ICA) has upgraded the Mid North Coast and Hunter flooding event classification to an “Insurance Catastrophe” due to updated feedback on ground information about local event severity.
So far, insurers have received 4,900 claims from the event, which has seen flooding in the Mid North Coast and Hunter impact communities since May 17th, 2025.
Of the total claims received so far, home has contributed 3,954, motor has added 771, and commercial claims total 212.
The ICA emphasises that it is currently too early to tell the impact of these floods and the total monetary damage incurred.
The decision to upgrade the event follows the ongoing challenges in recovery efforts, which the ICA believes shows the need for more sustainable solutions for impacted river catchments.
Andrew Hall, Chief Executive Officer, ICA, commented, “The decision to upgrade this event reflects the breadth and severity of damage caused to impacted communities. It will also serve to activate additional services and support for affected homeowners and businesses and reassure them that their insurer is there to help. Seeing the damage here in Taree today, it’s clear the road to recovery will be a long one.
“Our number one priority is helping households and businesses in the clean-up and recovery so they can get back on their feet as quickly and safely as possible. Insurers are on the ground in affected areas right now providing that support, including at a dedicated Insurance Hub in Taree and at Recovery Centres across the region, and this upgrade will ensure all the resources necessary are there to support people through this challenging time.”
Additionally, Insurance Australia Group (IAG) has disclosed that it has received around 2,500 claims from the event as of May 27th, 2025, predominantly for property damage due to heavy rainfall, strong winds and floodwaters.
Again emphasising that it is too early to estimate the cost of the current event, IAG stated on May 15th, 2025, that its net natural perils costs to the end of April 2025 were estimated to be approximately AUD 900 million, around AUD 250 million lower than the year-to-date expectation.
The insurer has a comprehensive reinsurance program that includes a quota share reinsurance covering 32.5% of all losses and a catastrophe cover for 67.5% of all losses above AUD 500 million up to AUD 10 billion. Additionally, there is a peril volatility cover of AUD 680 million, which provides strong downside protection against retained natural perils costs exceeding the FY’25 allowance of AUD 1.283 billion.
Nick Hawkins, Chief Executive Officer and Managing Director, IAG, commented, “As part of our 24/7 Major Event Response, our teams have been on the ground since last Friday in some of the worst-affected areas of the Mid North Coast. We have been contacting and doorknocking customers to ensure they are safe and offering help with claims, including immediate support such as temporary accommodation and emergency financial assistance.
“We have extra claims consultants ready to support customers, and our assessors and partner builders are conducting emergency make-safe repairs and assisting customers with their claims. Further resources are ready to be mobilised if required.
“We’re always looking at where we can deploy our resources to provide the best possible support for customers. Our NRMA Insurance Help Response Vehicles are now located at Bunnings in Taree and Kempsey and operate as mobile claims centres where customers can get face-to-face support. We also have teams located at all Recovery Centres across the region, as well as our local NRMA Insurance branches.”
Hawkins continued, “We know in many high-risk areas we need to build back better. Our assessors are working with customers on resilience measures as part of the repair and rebuilding process, such as using waterproof materials, raising power points and moving hot water tanks and air conditioning units to a higher level. Floods have a devastating impact on communities, and our thoughts are with all those who have been affected. Our priority is supporting our customers and helping them recover from these devastating floods.”
Last week, analysts at BofA Securities stated that these floods are not expected to derail the strong FY25 outlook, with reinsurers likely to remain disciplined at mid-year renewals.
The post ICA declares NSW floods ‘Insurance Catastrophe’ as claims received nears 5,000 appeared first on ReinsuranceNe.ws.
