IAG Estimates Queensland Storm Claims at $38 to $44 Million

The Insurance Australia Group Limited (IAG) announced that it has received around 6,000 claims as a result of the storms that hit southeast Queensland (See IJ web site – http://www.insurancejournal.com/news/international/2008/11/18/95591.htm).

IAG said its initial damage estimates are in the A$60 million to A$70 million range (US$38 to $44 million). It also indicated that the estimates included claims from the windstorm that swept through the northwest suburbs of Brisbane on Sunday Nov. 16 and the storms which affected southeast Queensland on Wednesday and Thursday, Nov.19 and 20.

IAG Managing Director and CEO Michael Wilkins confirmed that NRMA Insurance and CGU had received around 6,000 claims. He stated: “Our main priority is helping our customers. The NRMA Insurance and CGU teams have been working around the clock, fielding customer calls and processing claims. We have deployed additional assessing and claims management staff from interstate to provide further assistance to affected customers.”

IAG said the “majority of claims lodged with NRMA Insurance and CGU are related to home building and contents damage, with some commercial and motor vehicle damage also reported.”

The Group also noted that it “remains within its budgeted storm allowance for the 2009 financial year of A$314 million [US$198 million]. The company’s reinsurance retention for a single event in Australia is A$118 million [US$74.3 million]. It also has aggregate cover of A$150 million [US$94.5 million], which provides protection for accumulated losses arising from events larger than A$15 million [US$9.45 million] up to A$50 million [US$31.5 million]. In calendar year 2008 losses that can be counted towards the A$150 million aggregate include the A$51 million [US$32 million] from the Mackay storms in February 2008 and A$20 million [US$12.6 million from the Victorian windstorm in April 2008.”

Source: Insurance Australia Group – www.iag.com.au