The losses in the insurance and reinsurance market due to a severe low on the east coast that hit Australia in early February are estimated at AUD 794 million, according to PERILS AG.
As we explained yesterday, the Insurance Council of Australia (ICA) has set the losses from this recent disaster that struck Australia in the summer at AUD 677 million, based on the claims of March 23.
The “Australian East Coast Low” event hit the country from February 5 to 13, 2020 and primarily affected the Australian east coast states of New South Wales and Queensland.
According to PERILS, insured losses from storms, rain and floods are provisionally estimated at AUD 794 million based on data collected from insurers on property market losses.
This disaster damage followed the loss of the insurance and reinsurance market from bush fires that burned across Australia from late 2019 to early 2020 and has now exceeded AUD 2 billion, and the loss of industry due to heavy hailstorms that hit the southeastern region of Australia in January that has reached AUD 1.2 billion.
Overall, ICA estimates summer catastrophe insurers’ losses at more than AUD 4.6 billion. Some sources say that it will now exceed AUD $ 5 billion.
PERILS said that the east coast low in February 2020 was “a long gravure trough that extends inland along the Australian east coast. This low pressure trough drew moisture from the Tasman Sea that was warmer than usual, especially off Sydney. The result was very intense rainfall from early to mid-February 2020, which led to fall and river flooding. The precipitation was accompanied on February 9 by strong winds, storm surges and high waves. In combination, these weather features caused widespread damage to the coastal areas of South East Queensland and New South Wales. “
The industry loss from the event is the third largest for a low-tower system on the east coast in Australia, PERILS said.
It is only surpassed by an east coast low in June 2007 (an estimated AUD 2.4 billion today) and April 2015 (an estimated AUD 1.2 billion today).
Darryl Pidcock, director of PERILS Asia-Pacific, commented: “The summer of Cat events continued with the East Coast Low event after the Australian bush fires and hailstorms. With a combination of heavy rains, strong wind gusts and storm surges, significant insurance losses were recorded. While the east coast low caused significant property damage, heavy rains replenished the water catchment areas and brought relief to many rural areas affected by bush fires and drought. “
The recent disasters in Australia have affected some insurance-related securities (ILS) positions. ILS fund manager Twelve Capital said that a private ILS contract he had signed was subject to potential losses from the bushfires, while retrocession manager Markel CATCo said the Australian bushfire disaster had done so, which resulted in part of the capital in his listed reinsurance mutual fund strategy was included.
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