Home / Local / Perils shaves southern Australia storms loss estimate
16 May 2022
Catastrophe data company Perils has slightly reduced its loss estimate for southern Australia severe storms that lashed three states with hail, heavy rainfall and wild winds.
The third estimate for the October 28-30 event pegs losses at $1.016 billion compared to the previous figure of $1.028 billion.
“Whilst the focus has understandably been on the recent eastern Australia flood losses, the southern Australia severe storms event is a reminder of the ongoing challenges the industry faces in managing Australian natural catastrophe risks,” Head of Perils Asia Pacific Darryl Pidcock said.
“This event is not only one of the largest on record for southern Australia, but also a rather complex occurrence with a mix of hail, wind and rainfall-related losses.”
The storms were caused by a low-pressure system moving in a south easterly direction across SA, Victoria and Tasmania.
Personal lines property and motor represents 78% of the total industry loss, while SA accounts for 62% of the total.
Perils says its report will enable the industry to break the losses down by line of business, post code and intensity.
“Given the increased industry focus on improving catastrophe modelling for secondary perils we believe this report will further support efforts on this front,” Mr Pidcock said.
The next estimate will be released on October 31, marking a year after the event.