Extreme Weather Events Cost Australia Over AUD 1.8 Billion in H1 2025

Sydney — Australia has faced a challenging start to 2025, with three major declared weather events resulting in more than AUD 1.8 billion in incurred insurance claims, according to the Insurance Council of Australia (ICA).

The most damaging of these was ex-Tropical Cyclone Alfred, which alone has triggered over 125,000 claims worth AUD 1.36 billion. The ICA confirmed this event as the most costly and widespread natural disaster in Australia so far this year, accounting for 76% of total claims in the first half of 2025.

The February North Queensland floods added over 11,000 claims, amounting to AUD 274 million, while the more recent Mid-North Coast and Hunter floods have generated around 11,500 claims totaling close to AUD 200 million.

In May, the ICA had already disclosed that the North Queensland floods and Cyclone Alfred had caused insured losses nearing AUD 1.5 billion. With the addition of the latest flood in New South Wales, the toll has now exceeded that figure.

“We’ve had a busy start to 2025 with three declared events totalling more than AUD 1.8 billion in claims incurred to date,” said Liam Walter, ICA’s Director of Mitigation and Extreme Weather Response. “While this damage bill isn’t as severe as first expected, we acknowledge that for many communities, recovery is still very much ongoing, and there is still a long road ahead.”

Meanwhile, Insurance Australia Group (IAG) recently reported that its natural perils costs for the financial year 2025 came in at approximately AUD 1.08 billion, below budget expectations. – News Agency