Industry loss estimate for Australia Christmas storms finalised at AU $1.56bn: PERILS
PERILS AG has again raised its insurance industry loss estimate for the severe storms that affected eastern Australia through the Christmas period, lifting the total by another percent to AU $1.563 billion (still around US $1.05bn).
PERILS selected 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.
Now, it has been finalised at just over AU $1.56 billion by PERILS.
PERILS said today that personal lines property insurance losses represent 72% of the total industry loss, while commercial lines property losses represent 17% and motor losses 11%.
71% of the insured losses came from Queensland, 24% New South Wales and 5% Victoria.
The Australia Christmas Storms struck these states 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 at PERILS, commented, “Australia experienced a relatively benign period of major natural catastrophes in 2023 in comparison with previous years. Notwithstanding, it highlights the increasing risk not only of severe convective storms along coastal regions but, as we observed in this case, the potential for competing air pressure systems prolonging storm activity over an extended period.”
