Cyclone Pool to Address $1.7 Billion in Claims After Alfred's Impact
Cyclone Pool to Address $1.7 Billion in Claims After Alfred's Impact
1
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The destruction caused by Ex-Tropical Cyclone Alfred is projected to demand approximately $1.7 billion in claims from the reinsurance pool, according to Australian Treasurer Jim Chalmers.
As the cyclone swept across Queensland on March 8, over 63,000 claims have already been lodged with insurers.
The insurance coverage through the cyclone pool ceased 48 hours later, highlighting the widespread devastation in its wake.
Treasurer Chalmers, speaking from Queensland, emphasized that the government has earmarked about $1.2 billion in the forthcoming budget to aid cyclone-hit communities, focusing on both immediate hardship alleviations and long-term infrastructure rebuilding. This budgetary provision is critical as it supports local communities in their recovery efforts, reinforcing infrastructure, and ensuring that the social safety nets are equipped to handle such crises.
The Insurance Council of Australia has classified the event as a catastrophe, further underpinning the magnitude of the response required. Chalmers noted the ongoing dialogues with insurance providers, acknowledging the potential rise in building costs due to increased demand for reconstruction services, while aiming to contain inflationary pressures.
With insurance premiums already a key driver for inflation, concerns are rising over the potential affordability of insurance in disaster-prone areas. Chalmers emphasized the need for continuous government intervention to mitigate these costs. The cyclone pool, established as a financial safety net, was deemed significant but in need of further impact on insurance premiums.
Expected to announce the 2025-26 budget soon, Chalmers, alongside Assistant Treasurer Stephen Jones and MP Daniel Mulino, remains engaged in assessing additional measures stemming from the 2022 floods inquiry. The goal is to bolster market resilience and effectiveness while curbing insurance-related inflation. Despite advancements in affordability and market stability, Chalmers acknowledged the enduring challenges within the insurance sector.
Insurance Australia Group (IAG), a leading insurer in Australia, has highlighted the significant impact of climate change on the cost of home insurance. The company reports that the increasing frequency and severity of weather events are contributing to rising premiums for homeowners. - read more
Suncorp, a prominent Australian insurer, has reported an 8% increase in full-year cash earnings, reaching A$1.49 billion for the year ending June 30, 2025. This performance surpasses analyst expectations and is attributed to improved insurance margins and favorable natural hazard costs. - read more
Insurance Australia Group (IAG) has reported a significant increase in annual cash earnings for the fiscal year ending June 30, 2025, reaching A$1.17 billion. This growth is primarily driven by an 8% rise in net earned premiums to A$9.98 billion and lower-than-expected natural peril costs. - read more
Workers' compensation insurance is a form of insurance that provides financial protection for businesses and their employees in the event of workplace injuries or illnesses. It ensures that workers receive the necessary medical treatment and compensation for lost wages if they are hurt on the job. - read more
For tradespeople, tools and equipment are the backbone of their daily operations. From basic hand tools to advanced machinery, having the right gear is crucial for delivering quality work and maintaining efficiency. - read more
Public liability insurance is designed to protect businesses and tradespeople against legal costs and compensation claims for injury or damage to property by a third party. In layman's terms, it covers you if someone sues your business for damages. - read more
Dictionary
Grace Period
noun
A set amount of time after the premium is due during which a policyholder can make a payment without the insurance coverage lapsing.
