COVID-19 had 'handbrake effect' on insurance claims: ICA

The cost of insurance claims from four natural disaster catastrophes declared over the 2019-20 summer has passed A$5.19 billion, according to the Insurance Council of Australia.

ICA head of communications Campbell Fuller said the COVID-19 pandemic had a "handbrake effect" on insurance claims. The pandemic was declared a catastrophe on March 11, 2020.

Insurance losses from the Australian Bushfire Season rose to A$2.32 billion; South-East Queensland hailstorm to A$451 million; January 2020 hailstorms to A$1.525 billion; and East Coast storms and floods to A$896 million.

According to ICA, more than 15,000 new claims worth A$270 million were lodged in the past four weeks.

Fuller commented: “Thousands of new claims and property loss assessments have pushed total claims to more than 288,100 and the estimated damage bill to more than $5.19 billion.

“Insurers have already paid more than $2.85 billion for emergency accommodation, business interruption, repair and rebuilding work, replacement of motor vehicles and goods, services and settlements. This is despite the widespread impact of the natural disaster season and the handbrake effect of COVID-19.

“Almost 50 per cent of claims from the four storm, bushfire and hailstorm catastrophes have been closed by insurers – an extraordinary result for households and businesses affected by these disasters.”