Australia Christmas ’23 severe storm loss finalised 3% higher at AU $1.606bn: PERILS
The insurance industry loss estimate for the severe storms that affected eastern Australia through the Christmas 2023 period has now been finalised with a 3% increase to AU $1.606 billion, by PERILS.
The catastrophe loss data aggregator used the dates of 23rd to 29th December 2023 for this catastrophe loss event estimate, due to the common hours clause used in Australia.
PERILS first estimate given from February was for the event to cost insurance and reinsurance interests AU $1.395 billion (around US $905m).
It was later raised to by almost 11% to AU $1.547 billion back in April.
In a third update, the industry loss total was raised again to just over AU $1.56 billion by PERILS.
Now, the final update has been released, with the total some 3% higher at AU $1.606 billion.
In its update today, the attribution of losses has been updated, with more related to property losses than before.
PERILS said today that property losses made up 89%, having previously split this as personal lines property insurance losses representing 72% of the total industry loss, while commercial lines property losses represented 17% and motor losses 11%.
70% of the insured losses came from Queensland, 26% New South Wales and 4% Victoria.
The Australia Christmas Storms struck these regions and the severe convective storm activity saw large hail, intense winds, flash floods, and tornadoes driven by a low-pressure system over southeastern Australia which was blocked by a high-pressure system over the northern Tasman Sea.
This system drove numerous convective storm cells and intense thunderstorms, while it was the impacts of large hail, strong winds, tree fall and flying debris as well as flash floods that drove the insured damages.
PERILS estimate is based on claims falling to the property and motor hull lines of insurance business.
Darryl Pidcock, Head of Asia Pacific, said, “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.”
