The latest analysis from the Insurance Council of Australia (ICA) shows that extreme weather will cause insured losses to increase by 727% in 2025, reaching AU$4.8 billion, with the number of claims climbing to 294,000, of which Queensland alone will lose more than AU$4.1 billion.
The ICA’s most recent extreme weather media report puts losses at $3.5 billion in 2025; rising costs and claims from two severe storm and hail events have pushed that number to jump to $4.8 billion.
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.
The ICA explains that the total economic cost of extreme weather events in 2025 (including insured losses and wider economic costs) is estimated to exceed $8.6 billion.
Insurers handled 294,000 declared extreme weather event claims in 2025, nearly six times the previous year, and the average cost per claim jumped 39% to $16,471.
This compares with insured losses from extreme weather of A$2.35 billion in 2023 and A$585 million in 2024.
Additionally, the November storm has surpassed former Tropical Cyclone Alfred as the costliest event, with 92,900 claims and $1.7 billion in losses, although the cyclone remains the costliest event with more than 133,000 claims totaling $1.5 billion.
Severe storm and hail events in Queensland and New South Wales damaged car hoods and windscreens, uprooted trees and flooded homes, resulting in nearly 93,000 claims totaling $1.78 billion.
In February 2026, Zurich-based catastrophe insurance data provider PERILS estimated a second insurance market loss from the same event at A$1.512 billion.
Severe spring storms affecting south-east Queensland and northern New South Wales earlier this month have now resulted in 41,200 claims worth almost $900 million.
All told, floods in North Queensland resulted in 11,770 claims and losses of $316 million, while floods in the Mid North Coast and Hunter resulted in 14,700 claims and losses of $275 million. Meanwhile, Bondi Event has so far reported 39 claims and $600,000 in losses.
The ICA warns that the unpredictability and intensity of extreme weather is increasing, demonstrating the urgent need for governments to invest in mitigation measures to protect Australia’s most vulnerable communities from impacts.
In 2025, Australian general insurers paid A$58.9 billion in claims across 90 million policies, an 18% increase on the previous year, equivalent to A$226 million every working day.
ICA chief executive Andrew Hall commented: “While Queensland is no stranger to extreme weather, four severe events in one state in 12 months is significant and many communities are still in the process of recovery. Storms and hail are complex events that often have a long-tail effect, meaning claims continue to grow months after the event as more are lodged and assessed. The insurance industry is very sensitive to supply chain challenges and pressure on the construction and transport sectors due to ongoing conflict in the Middle East.”
