The numbers of claims from the heavy rain and floods in NSW and southern Queensland has more than doubled in a day as conditions in and around Sydney and the north coast eased.
The Insurance Council of Australia says 11,700 claims have been lodged as a result of the floods and storms across NSW as of yesterday morning – more than doubling in one day.
Despite that the share prices of two of the three listed major insurers rose yesterday after Monday’s fall.
The heavy rain spread south from Sydney yesterday and into northern and eastern Victoria, while floods and rain gripped southeast Queensland for yet another day.
Parts of the NSW northwest and midwest saw minor flooding and rain yesterday for a second day as well.
But conditions in Sydney have improved dramatically with sunshine and maximum temperatures around 30 degrees C forecast for today (Wednesday).
The Insurance Council said the areas with the majority of claims include the mid-north coast towns of Port Macquarie, Kempsey, Laurieton and Taree as well as western Sydney, Penrith and in the Hawkesbury-Nepean valley.
The council said it was still too early to tell what the total value of these claims would be, but said the closest reference point was the 2020 east coast storms and flooding event where 10,000 claims resulted in around $1 billion in payments.
Coal exporter revealed a problem yesterday in the Hunter Valley with a warning that up to 500,000 tonnes of coal might not be shipped because of a combination of problems at one of the two coal loaders at newcastle and the flooding and road and rail closures in the Hunter Valley (See separate story).
The winter wheat harvest and other crops in NSW will be damaged (to what extent we don’t know). Most of the grape harvest in NSW is over, while meat production and exports will be affected by the difficulty of getting stock to market.
IAG’s head of claims Luke Gallagher said yesterday the insurer planned to deploy “rapid response vehicles” to the worst affected areas to start processing claims.
“We’re not seeing the full extent of flood clams yet; this event is still unfolding. There’s more inclement weather predicted into Thursday. We’re at the very early stages,” Mr Gallagher said.
Despite the escalation in claim numbers, shares in IAF (the biggest general insurer) rose 0.6% yesterday to $4.78, while shares in QBE also ended higher at $9.59, for a gain on the day of 1%.
Shares in Suncorp eased 0.4% to $9.88.
Insurance claims are expected for motor vehicle, business continuance, home and contents and related damage.
But the absence of flood insurance will make it claim and the argument will (again) be over the difference between falling water (rain) and rising water (floods). When does the former become the other?
