Extreme weather events in 2025 have resulted in 264,000 claims and nearly $3.5 billion in insured losses, according to the latest data from the Insurance Council of Australia (ICA).
The most costly of these losses was ex-tropical cyclone Alfred, which resulted in 132,000 claims and insured losses of more than $1.5 billion.
Five weeks of severe hail in October and November caused damage similar to Alfred’s. Last year, the Insurance Council declared five major or catastrophic events to have occurred. These include North Queensland floods in February, ex-tropical cyclone Alfred in March, mid-north coast flooding in May and two severe storm events in October and November.
Severe spring storms affected south-east Queensland and northern New South Wales from late October to early November, resulting in 35,500 claims worth $601 million.
In late November, more severe storms and hail affected both states, adding 70,200 claims and $814 million in insured losses. The two incidents totaled $1.4 billion in losses.
North Queensland floods in January resulted in 11,700 claims and $304 million in losses, while May’s mid-north coast and Hunter floods saw an additional 14,500 claims and $266 million in losses.
Other more severe local events include flooding in western Queensland, storms in Casterton and Harden and bushfires in Halls Gap, according to the ICA. Due to the small size of the event, it is not included in the published data.
Insurers expect more claims from these events, meaning the ultimate cost of extreme weather in 2025 will increase, the committee explained.
In comparison, insured losses from extreme weather events totaled $581 million in 2024 and $2.35 billion starting in 2023. To support community recovery throughout 2025, ICA coordinated three insurance centers and held 13 community consultation meetings immediately following the incident.
The first few weeks of 2026 also see significant extreme weather activity, from bushfires in Victoria to monsoon weather in North Queensland.
The ICA explained that insurers are prioritizing claims from these events and supporting communities in their recovery, with many insurers maintaining a strong on-the-ground presence in parts of Victoria.