PERILS estimates Cyclone Alfred insurance coverage losses at AUD 2.57bn

Zurich-based disaster insurance coverage information supplier PERILS AG has issued its preliminary trade loss estimate for Cyclone Alfred, inserting the whole insurance coverage market loss at AUD 2.568 billion.

For these unaware, Cyclone Alfred impacted the Australian states of Queensland and New South Wales between 28 February and 12 March 2025.

Though the system’s wind depth weakened earlier than landfall, it transported vital tropical moisture into Southeast Queensland and northeastern New South Wales.

As per PERILS, the cyclone’s gradual motion, mixed with the inland topography, intensified rainfall, leading to torrential downpours, distinctive 24-hour precipitation totals, and widespread riverine and flash flooding.

“Cyclone Alfred left over 300,000 properties and companies with out energy and brought about extreme injury to the seashores on the Gold Coast and Sunshine Coast. There was one fatality and main disruption to move, together with the suspension of flights and closure of faculties,” the disaster insurance coverage information supplier mentioned.

PERILS acknowledged that the AUD 2.568 billion loss estimate is predicated on information collected from affected insurers.

Consistent with PERILS’ protection definition for Australia, this determine contains losses from the property and motor hull traces of enterprise.

Darryl Pidcock, Head of Asia Pacific & Cyber at PERILS, commented, “It has been over 50 years since a cyclone travelled to this point south to make landfall on the Gold Coast and its surrounding areas, the final cyclone being Wanda in 1974.

“Losses have been attributable to a mixture of wind and protracted heavy rain-related injury, together with a excessive quantity of claims from meals spoilage because of the energy outages, water ingress and storm surge property injury and a few flood-related losses.

“In some respects, this occasion has options much like a extreme convective storm with robust winds and intense rainfall, albeit over an prolonged interval. When it comes to historic loss occasions, Cyclone Alfred is the biggest cyclone loss occasion on an as-if-today foundation to influence the Australian insurance coverage trade since Cyclone Tracy in 1974.”