Severe convective storms (SCS) that broke out in Queensland and New South Wales between November 21 and 27, 2025, caused an estimated $2.663 billion in losses to the insurance industry, according to Zurich-based catastrophe insurance data provider PERILS.
PERILS’ preliminary industry loss estimates are based on data collected from affected insurance companies, covering property and auto hull businesses.
The South China Sea outbreak hit Australia’s east coast in late November, with storm activity affecting the area between Brisbane and Sydney, bringing large hail, damaging winds and locally heavy rainfall.
According to PERILS, the largest event occurred in southeastern Queensland on November 24, where hail up to 14 cm in diameter and widespread damaging wind gusts occurred.
On 25 November, the Insurance Council of Australia (ICA) declared the incident in south-east Queensland an insurance catastrophe, extending to all postcodes in Queensland and New South Wales on 28 November.
Darryl Pidcock, PERILS Asia Pacific and Cyber Director, commented: “This event is the second $1 billion SCS event in a month and ranks among the top five SCS events in Australia over the past 60 years. This event is significantly more damaging than the October storm that caused severe damage to roofs, facades, solar panels and motor vehicles from hailstones the size of tennis balls or larger in some Brisbane suburbs.”
“While there are differing views on whether the frequency of Australia’s multi-billion dollar South China Sea incidents has increased, to provide some factual context, on a normalized assumption basis today, Australia has experienced five South China Sea incidents in the current decade with industry losses exceeding A$1 billion, compared with three in the previous decade, none between 2000 and 2009, and two between 1990 and 1999.”
PERILS will release updated estimates of SCS pandemic market losses in Queensland and New South Wales on 27 February 2026, three months after the end of the campaign date.