Insurance News: Insurance Losses for April’s Queensland Hailstorms Estimated at A$604M – PERILS
The insurance industry’s loss footprint for the April 2020 Central Queensland hailstorms is estimated at A$604 million (US$423.2 million), according to PERILS, the independent Zurich-based organization that provides industry-wide catastrophe insurance data.
During the first three months following the event and based upon insurance industry feedback, the insured losses were not expected to exceed the PERILS event reporting threshold for Australia of A$500 million (US$350.3 million), said PERILS, noting that, as a result, it did not carry out the initial rounds of data collection for this event.
However, in more recent months, the insurance industry has experienced unusually late and significant claims development which has resulted in PERILS issuing its six-month industry loss footprint report.
This report provides a detailed breakdown of property and motor losses by postcode, with the data further divided by residential and commercial lines and loss amounts split into buildings, contents and business interruption losses where available. It is complemented with information on damage degrees and hail intensities based on radar measurements by the Australian Bureau of Meteorology.
This report is released six months after the hailstorms struck the central region of the state of Queensland, Australia. Severe thunderstorms developed over the Central Highlands and Capricornia districts in Queensland on the afternoon of April 19, producing hail of 8 to 10 centimeter (3.2 to 4 inches) in diameter.
PERILS said this was an unusual event for the region given the overall size of the hail and the fact that it occurred late in the season. The largest hail impact was recorded in Rockhampton and Yeppoon, where the storms caused extensive damage primarily to residential homes and commercial properties.
Wind gusts of up to 100 kilometers per hour were also recorded in Mackay, said PERILS, noting that some surrounding rural areas were also affected by hail, which damaged crops.
Property damage constituted 95% of the total insured losses with residential property accounting for 79% and commercial property 16%, respectively. Motor losses, personal and commercial lines combined constituted a further 5% of the industry loss.
Blog Submission: Peter Sellwood
PALTD InsureRight – Insurance & Risk Management
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