Insurers' Financial Disaster
Newcastle Herald
Saturday May 11, 2002
INSURANCE payouts from natural disasters in Australia more than quadrupled in 2001 compared with the previous year, an industry study has found.
The report issued yesterday by the Insurance Disaster Response Organisation (IDRO) showed insurers paid out more than $254million for the year, up from $63.5million in 2000.
IDRO national coordinator Christopher Henri said an overwhelming majority of the blow-out went to NSW claims, for which $217million of the $254million was paid out.
`Natural disasters in NSW last year included $70million from the Christmas bushfires and severe storms in Sydney and country NSW totalling some $147million in insured losses,' Mr Henri said.
`The other major disaster was a severe storm in Brisbane which cost insurers $37million.'
Insurers settled about 3200 domestic claims, 150 commercial claims, 130 motor vehicle claims and 52 farm claims from the Sydney bushfires, Mr Henri said.
`About one in five households and businesses were found to either have no insurance or were severely underinsured, which resulted in them seeking more than $10million from the NSW Government-managed appeal fund,' he said.
In comparison, 2000 was relatively quiet with most insurance claims resulting from cyclones in Queensland and Western Australia.
Mr Henri said the 1999 Sydney hailstorm remained the largest natural disaster in insurance terms with losses worth $1.7billion, followed by the 1989 Newcastle Earthquake at $1.1billion.
Tropical Cyclone Tracy, which levelled much of Darwin in 1974, had cost insurers $837million in current dollar terms, Mr Henri said.
© 2002 Newcastle Herald