Zurich-based catastrophe insurance data provider PERILS has raised its insurance industry loss estimate from severe convective storms (SCS) in Queensland and New South Wales from November 21 to 27, 2025 to $2.95 billion.
The second estimate is compared to the initial loss estimate of A$2.663 billion released on January 8, 2026, six weeks after the end of the campaign date.
Likewise, the loss estimates cover property and auto hull operations and are based on loss data collected from affected insurers, consistent with the Australian hazard insurance definition.
The latest estimate of market losses or tertiary sector losses resulting from the campaign will be released on May 27, 2026 (six months after the campaign end date).
In late November 2025, the South China Sea hit Australia’s east coast, affecting a large area from Brisbane in southeastern Queensland to Sydney, New South Wales.
The South China Sea outbreak brought locally heavy rainfall including large hail, damaging winds and storm activity.
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. These events caused damage to insured property and disrupted power to 160,000 homes and businesses.
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, Head of Asia Pacific and Networks at PERILS, commented: “Australia has experienced two periods of severe convective storm activity so far in the 2025/26 South China Sea season. The first occurred in late October 2025 and we currently estimate industry losses at A$1.512 billion.
“The second occurred in late November and amounted to $2.95 billion in losses. Three months after the end date of the corresponding event, the total losses totaled $4.462 billion. This amount is likely to increase further. These events once again illustrate the importance of SCS as a major hazard for the Australian insurance industry.”
