Bushfire insurance claims skyrocket

Insurance claims from the ongoing bushfire crisis plaguing the nation have soared above 1000, and it’s not over yet.

The industrial area of Batemans Bay was devastated by the bushfires. Picture: John Grainger.

Insurance claims from the ongoing bushfire crisis plaguing the nation have soared above 1000, but the industry faces the prospect of a lengthy and uncertain wait before the impact of existing fires can be quantified.

Since November 8 the Insurance Council of Australia has recorded $238m in estimated claims, a figure it expects to be dwarfed by damages yet to be tallied.

The peak body has recorded 3870 claims from 236 postcodes across the country, stretching from Queensland to South Australia, but no respite is on the horizon in the period it dubs “disaster season”.

Meanwhile, the vast size and volatile nature of the blazes have restricted access to many affected areas. “Insurance assessors are working in areas safe to do so,” ICA spokesman Campbell Fuller said. “There are some areas that are still too dangerous to access”.

Insurance Australia Group (IAG), the country’s largest underwriter, had by Wednesday tallied 90 claims in NSW and Victoria from communities affected by fire damage on Monday alone.

IAG executive general manager, Luke Gallagher said the “terrible bushfire season” had resulted in 1013 fire damage claims nationally between December 5 and Christmas Eve.

The figure included 373 claims from South Australia, with 335 of them for partial or full home property damage.

“We are urging our customers to get in contact with us as soon as possible to make a claim so we can provide immediate support, such as emergency accommodation and financial assistance,” Mr Gallagher said.

The ICA declared “catastrophic” zones in NSW and Queensland as early as September, but has since extended the categorisation to areas of Victoria and South Australia.

Retail insurers QBE, Suncorp and RACV told The Australian on Wednesday that the unpredictable nature of the ongoing inferno made it difficult to assess the damage toll.

An RACV spokesman said it was too early to estimate the impact of the bushfire crisis.

“RACV’s No 1 concern is for the health and wellbeing of all Victorians, including our members and customers,” he said.

Suncorp said it had support teams on the ground to assist affected communities while the emergency continued.

A spokesman said financial relief packages were readily available for customers, including access to temporary accommodation.

QBE said its “first priority” was to support affected customers.

Including bushfires in September and October, total claims for 2019 had reached $294m, ICA’s Mr Fuller said.

However, bushfire claims for the year were likely to be dwarfed by the $1.27bn of claimed losses from the Queensland floods in February, he said.

A November report co-published by IAG and the US ­National Center for Atmospheric Research (NCAR), indicated that climate change will exacerbate Australia’s “bushfire risk” over the coming decades.

IAG executive manager of natural perils, Mark Leplastrier, said the country was likely to see an increase in “frequency and severity” of bushfires, prompting insurers to increase underlying risks on asset protection.

“It’s likely that bushfire seasons will be prolonged and more severe into the future, particularly heading into summer with ongoing major drought conditions,” he said.

“It’s critical there is a co-ordinated national approach from governments, industries and businesses.”