Zurich-domiciled catastrophe insurance data provider PERILS AG has disclosed its second industry loss estimate for Cyclone Alfred to AUD 2.25 billion, a 12% dip from its initial loss estimate of AUD 2.568 billion issued in April 2025, six weeks after the event.
Cyclone Alfred affected the Australian states of Queensland and New South Wales from February 28th to March 12th, 2025.
This latest estimate is based on loss data collected from the affected insurers.
In line with the PERILS’ coverage definition for Australia, the estimated loss number covers the property and motor hull lines of business.
To recap, Cyclone Alfred made landfall on March 7th, 2025, as a Category 1 cyclone near the Gold Coast in Southeast Queensland after spending several days offshore, slowly moving south.
It reached an offshore peak intensity of Category 4 but by landfall diminished in wind strength, carrying substantial tropical-sourced moisture into the Southeast Queensland and northeast New South Wales regions.
PERILS explains that 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 also one fatality and major disruption to transport with the suspension of flights and closure of schools.
Darryl Pidcock, Head of Asia Pacific & Cyber at PERILS, commented, “We have observed a 12% reduction overall since the six-week initial industry loss estimate was released which is unusual compared to previous Australian events. While the number of claims has remained stable, the average claim amount has reduced from $16,000 to $14,000. Compared to other storm and flood events this average claim amount is comparatively low, reflecting, in part, the relatively high proportion of food spoilage claims caused by extended power outages.
“Although wind damage was not a major loss contributor as wind gusts reduced substantially upon Alfred making landfall, heavy and persistent rainfall caused considerable damage albeit not at the levels initially expected. Our third loss report to be released in three months’ time will include a detailed breakdown of losses by postcode, line of business and coverage enabling a more detailed analysis of this event.”
In line with PERILS’ reporting schedule, a third estimate of the market loss for the event in the form of an industry loss footprint by CRESTA zone and property and motor lines of business will be posted on September 12th, 2025, six months after the event end date.
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