PERILS pegs Australian East Coast Low insured losses at A$794m
Insurance losses from the February 2020 Australian extratropical cyclone, which mainly affected the east coast states of New South Wales and Queensland, are estimated at A$794 million ($491.5 million).
Zurich-based catastrophe insurance data provider PERILS has revealed its initial property loss estimate for the East Coast Low from February 5 to 13, 2020.
The resulting insurance loss represents the third largest industry loss from an East Coast Low event in the last three decades. It is only surpassed by the East Coast Lows of June 2007 (estimated at A$2.4 billion) and of April 2015 (estimated at A$1.2 billion).
In addition, the February 2020 East Coast Low was the third major cat event during the Australian summer 2019/2020. It added to the already significant loss burden sustained by the region resulting from the 2019/2020 Bushfires and the January Hailstorms in Eastern Australia.
Australian east coast lows are very intense low-pressure systems classified as extratropical cyclones. They typically occur along the Australian east coast and can affect an area stretching from South East Queensland down to the border between the states of New South Wales and Victoria.
The East Coast Low of February 2020 was a typical example of such an event. It was a long low-pressure trough extending inland along the Australian east coast. This low-pressure trough drew in moisture from the Tasman Sea which was warmer than usual, particularly off Sydney. The result was very intense rainfall from early to mid-February 2020 leading to flash and river flooding. The rainfall was accompanied by strong winds on 9 February as well as storm surge and high waves. In combination, these weather features caused widespread damage along the coastal areas of South East Queensland and New South Wales.
Darryl Pidcock, head of PERILS Asia-Pacific, commented: “The summer of Cat events continued with the East Coast Low event following the Australian bushfires and hailstorms. With a combination of heavy rainfall, strong wind gusts and storm surge, considerable insurance losses were experienced. Whilst the East Coast Low caused significant property damage, the heavy rainfall refilled water catchment areas as well as bringing relief to many bushfire and drought-affected rural areas.”
PERILS will reveal an updated estimate of the property market loss from the February 2020 East Coast Low on May 13, 2020, three months after the event end date.
