Extreme weather drives school insurance surge in Australia
Extreme weather drives school insurance surge in Australia | Insurance Business Australia
Property
Extreme weather drives school insurance surge in Australia
See the most damaging times of the year and areas with the highest average claims
Property
By
Roxanne Libatique
Extreme weather events have been a significant factor behind property insurance claims for Australian schools over the past decade, with storms, fires, and floods accounting for 78% of all claims, according to recent data from QBE Insurance.
This information is part of QBE’s “Safeguarding Australian Schools” report, which examined property claims trends and highlighted the risks associated with severe weather.
Pat Priest, general manager, commercial, at QBE Australia Pacific, said that fluctuations in weather patterns – driven by both La Niña and El Niño – have caused considerable damage to school infrastructure.
“A series of severe weather systems driven by record-breaking La Niña rain events coupled with dry El Niño weather patterns have impacted our schools by damaging classrooms, destroying sports grounds, and impairing key infrastructure,” she said.
Most damaging month and year for school property claims
The report found that February, coinciding with the return to school after the summer break, is the most damaging month, accounting for more than a quarter of all property claims. This period often reveals issues such as leaking roofs, damaged carpets, and equipment malfunctions that have gone unnoticed during the holidays.
The report also highlighted 2022 as the most expensive year for school property claims, with over $40 million paid out, primarily due to the prolonged La Niña weather event.
Priest said that proactive maintenance could help prevent weather-related damages.
“We know extreme weather events are increasing in severity and frequency, so it’s important for schools to get proactive with their maintenance with many storm-related claims potentially avoided through routine upkeep, such as clearing gutters and drains,” she said.
Australian states with the highest average school property claims
The report provided a state-level breakdown, indicating Queensland has the highest average claim amounts, followed by Tasmania and the Northern Territory. However, New South Wales reported the largest number of claims overall.
Asia-Pacific property insurance market trends
This rise in weather-related claims for Australian schools is part of a broader trend across the Asia-Pacific (APAC) region.
China, Japan, and Australia are expected to dominate the APAC property insurance market, collectively accounting for 75.2% of written premiums in 2024. China is projected to lead with a 36% market share, followed by Japan at 23.5%, and Australia at 15.7%.
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