PERILS says that its industry loss estimate for the Eastern Australia floods earlier this year now stands at AUD $4,895m.
It said that in line with its event definition, the loss number covers the property and motor hull lines of business. Earlier estimates of the cost had placed it at AUS $3,991m. PERILS said that a further estimate will be released in mid-September.
Darryl Pidcock, head of PERILS Asia-Pacific, commented: “The complexity and volume of claims caused by this weather event are presenting significant challenges to the insurance industry which is reflected in the increase in PERILS’ second loss estimate. A key driver is claims inflation due to rising labour and supply costs which has become a critical issue for the industry.”