Cyclone Marcia whips up at least $275m in insurance claims

CYCLONE Marcia has triggered at least $275 million in damage claims for insurers, after bashing into central Queensland and shearing roofs off homes.

Damage at Yeppoon after Cyclone Marcia devastated the central Queensland town. Pictures: Jack Tran

CYCLONE Marcia has triggered at least $275 million in damage claims for insurers, after it bashed into central Queensland and sheared roofs off homes.

At least 22,500 insurance claims are to roll in as well, based on a Courier-Mail tally of estimates and current numbers of seven insurance companies.

The trend in damage indicates Marcia will be a sizeable event, although not as devastating as wild weather such as Cyclone Yasi in 2011. Yasi triggered $1.4 billion in damage, according to Insurance Council of Australia statistics.

The $275 million figure is a conservative Courier-Mail early estimate based on current trends and insurer’s announcements, and could ultimately vary.

The ICA also noted on Wednesday that brokers were starting to call in commercial-insurance claims, which can be large.

The biggest hit from Marcia appears to be major player Brisbane-based Suncorp, whose brands include AAMI and Apia. Suncorp warned the sharemarket on Tuesday that the damage bill could be between $120 million and $150 million.

Another bigger player hit in the region is Sydney-based IAG, whose brands include NRMA, Coles and CGU. On Wednesday, IAG revealed a likely cost of between $60 million and $90 million.

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IAG had received about 3500 claims. One large Queensland insurer with similar claim numbers to IAG is Brisbane-based RACQ Insurance.

RACQ has declined to reveal a dollar value of damage, but it does not have similar exposure to commercial insurance as IAG.

Claims numbers then naturally dwindle to companies either growing their presence or with less central Queensland exposure.

Sunshine Coast-based Youi had gotten about 1900 claims, worth about $10 million. Youi said claim lodgements had slowed in the past 48 hours so were not expecting the bill to climb much beyond that estimate.

Sydney-based Allianz had 1855 claims worth $14.8 million, and Brisbane-based Budget Direct had 617 claims worth more than $6 million.

Sydney-based QBE notched 1700 claims.

 

CLAIMS:

RACQ Insurance 3343 claims as of 3 March (No dollar figure given)

IAG 3500 claims as of 3 March ($60m-$90m potential total cost)

Suncorp estimates 10,000 claims will be lodged (estimates $120m-$150m net cost, with Berkshire Hathaway covering remaining 30% of Qld home claims)

Youi 1900 claims as of 4 March. ($10m cost not expecting much further increase)

Allianz 1855 claims as of 4 March. ($14.8m cost)

Budget Direct 617 claims as of 4 March. ($6m+ cost)

QBE 1700 claims as of 4 March (no dollar figure given)