Severe Weather in Eastern Australia Sparks Insurance Claims Spike

2

The New South Wales State Emergency Service (SES) has reported over 2,500 incidents related to the severe conditions, indicating a public safety crisis. As the storms continue, the SES anticipates that the number of incidents will rise, particularly across the Mid North Coast and northeastern regions of the state.

Among the most affected areas, issues such as fallen trees, downed powerlines, and property damage have dominated the dispatch calls. Within a mere 24-hour period, more than 143,000 homes experienced power outages, showcasing the widespread impact of the storms.

Insurance companies like Allianz have already begun to respond, with more than 80 claims received as of 10 a.m. the next day. “High callout numbers from the SES typically indicate an uptick in property claims, and we’re prepared for that,” stated a company spokesperson, highlighting the industry's readiness to handle the aftermath of such severe weather events.

As the weather conditions remain volatile, further claims are anticipated in the days to come. The SES has reported tragic incidents, including the death of an elderly man in Cowra after a tree struck his vehicle, and injuries sustained by individuals in Wagga Wagga due to other storm-related hazards.

Gusts exceeding 100 kilometers per hour have been recorded at various locations, including Wagga Wagga and Sydney's Kurnell, emphasizing the extreme nature of the wind associated with these storms. Queensland has also faced its share of challenges, notably in Stanthorpe, where substantial hailstorms have wreaked havoc.

Among the hardest-hit areas identified by Suncorp are Maitland and Wagga Wagga in NSW and Stanthorpe in Queensland. “In light of the ongoing weather forecasts, we are taking steps to support our affected customers and are proactively reaching out to them,” said a Suncorp representative, underscoring the commitment of insurance providers to assist those in need during this natural disaster.

According to the Bureau of Meteorology, hailstones measuring up to 13 centimeters have been observed south of Grafton, with seven-centimeter stones reported near Kyogal later in the afternoon. A warning for large hail, damaging winds, and heavy rainfall remains in effect for parts of the Northern Rivers, Mid North Coast, and Northern Tablelands districts.

While communities begin to assess the damage and reconstruct following these storms, the impact on local economies and the insurance industry is expected to be significant. Events like these remind us of the power of nature and the importance of preparedness and responsiveness within the financial services sector.

This report captures insights from various sources, including the SES and major insurance firms such as Allianz and Suncorp, illustrating the extensive repercussions of this recent weather outbreak.

Published:Friday, 17th Jan 2025
Source: Paige Estritori

Share this news item:

Insurance News

Clear

Cyber Insurance Becomes Essential Amid Rising Digital Threats

12 Sep 2025: Paige Estritori

The recent cyberattack on Fortnum Private Wealth, accompanied by ASIC's legal action, has spotlighted the critical risks cyber threats pose to financial advice companies in Australia. With digital integration intensifying across the finance sector, the owner of Fortnum, Entireti, plans to defend the case, underscoring the necessity for ongoing vigilance in cybersecurity measures. - read more

Swiss Re Foresees Rising Premiums Amid Increasing Global Risks

10 Sep 2025: Paige Estritori

In a comprehensive analysis, Swiss Re Institute predicts that global property and casualty insurance premiums will rise in tandem with GDP over the upcoming decade. This growth is driven by amplified natural catastrophe losses, asset accumulation, and heightened economic and litigation claims inflation. The institute's report outlines the evolving insurance landscape amid increasing global risks. - read more

Insurance Council of Australia Assists NSW Flood Claimants

09 Sep 2025: Paige Estritori

In response to the devastating floods that swept across New South Wales' Mid North Coast in May, the Insurance Council of Australia (ICA) is taking proactive steps to support the affected residents. Insurers, organised by the ICA, will be meeting with flood victims in Kempsey, Taree, and Port Macquarie to provide guidance and support as they navigate their insurance claims. - read more

Ombudsman Upholds Policyholder’s Claim Despite Fraud Allegations

08 Sep 2025: Paige Estritori

A motor insurance policyholder has won a significant dispute over fraud allegations, with the industry ombudsman ruling in favour of a payout following a controversial car accident claim. The case revolved around an incident where the claimant's wife crashed at an intersection one evening, reportedly failing to yield. The lack of photographic evidence due to shock and subsequent involvement of towing services complicated matters. - read more

NM Insurance Secures Growth with Five-Year Zurich Partnership

05 Sep 2025: Paige Estritori

In a strategic move set to bolster its market position, NM Insurance has announced a five-year agreement with capacity provider Zurich, positioning itself for further growth and increased broker confidence in its success. Since its establishment two decades ago as Nautilus Marine Insurance Agency, NM Insurance has expanded its focus beyond the recreational boat market in Australia, branching into New Zealand and diversifying into the commercial marine, caravan, and motorcycle sectors. - read more

Empower Your Cyber Knowledge with CFC's Free Masterclass

03 Sep 2025: Paige Estritori

In an era where cyber threats are increasingly sophisticated, CFC Underwriting Limited has unveiled a unique opportunity for brokers to fortify their expertise through its newly launched Cyber Masterclass. This initiative offers a flexible, on-demand video learning series designed to advance brokers into proficient cyber insurance specialists at their convenience. - read more

NSW Revisits CTP and Lifetime Care Schemes

02 Sep 2025: Paige Estritori

New South Wales (NSW) is undertaking a detailed review of its Compulsory Third Party (CTP) insurance scheme as well as its lifetime care and support system. The Standing Committee on Law and Justice of the state's upper house has initiated this examination as part of their routine practice conducted every parliamentary term. The last thorough assessment took place in 2022. - read more

AFCA Upholds Insurer's Premium Increase Amid Consumer Complaint

01 Sep 2025: Paige Estritori

A recent decision by the Australian Financial Complaints Authority (AFCA) has ruled against a homeowner seeking an $18,000 refund from Allianz. The homeowner claimed that the insurer failed to adequately inform her about substantial increases in her optional flood cover premiums. Initially, her monthly payments surged from $369 to $1277 in August 2022, a change she only noticed in March of the following year through her bank statements. - read more

Rising Group Premiums Pose Challenges for Australian Life Insurance

28 Aug 2025: Paige Estritori

Insurance premiums for group life policies with long-term benefits have surged between 15% to 25% on average in the first half of the year, according to a mid-year market update from Marsh Australia. While the steepest increases affected those with adverse claims experiences, short-term rates and premiums for permanent disabilities remained relatively steady. The sector has also become more selective, with insurers adopting stricter underwriting standards, particularly eschewing high-risk industries. - read more

Concerns Arise Over Construction Code Pause Amid Housing Push

28 Aug 2025: Paige Estritori

The federal government's initiative to accelerate housing development by relaxing certain building regulations has raised alarm within the insurance sector. Housing Minister Clare O’Neil announced changes on social media, indicating a strategic pause on parts of the National Construction Code to expedite building approvals and encourage the construction of much-needed homes across Australia. This move comes in response to challenges in the approval process, which often delays construction. - read more

Click for more Insurance News