Perils lowers Cyclone Alfred loss estimate to A$2.25 billion

By Ryan Hewlett

June 12 - (The Insurer) - Loss aggregator Perils on Thursday issued a second industry loss estimate of A$2.25 billion ($1.46 billion) for Cyclone Alfred, which affected the Australian states of Queensland and New South Wales between February 28 and March 12, 2025.

The second estimate is 12.4% lower than the initial estimate of A$2.59 billion issued by Perils in April, six weeks after the event end date.

The loss number covers the property and motor hull lines of business and is based on loss data collected from affected insurers.

Cyclone Alfred made landfall on March 7 as a Category 1 cyclone near the Gold Coast in southeast Queensland.

The cyclone left more than 300,000 homes and businesses without power and caused severe damage to the beaches on the Gold Coast and Sunshine Coast. There was one fatality and major disruption to transport, including the suspension of flights.

An updated estimate of the market loss from Cyclone Alfred will be made available on September 12, six months after the event end date.

Perils head of Asia Pacific and cyber Darryl Pidcock said the 12.4% reduction was “unusual” compared to previous Australian events.

“While the number of claims has remained stable, the average claim amount has reduced from $16,000 to $14,000. Compared to other storm and flood events this average claim amount is comparatively low, reflecting, in part, the relatively high proportion of food spoilage claims caused by extended power outages,” said Pidcock.

“Although wind damage was not a major loss contributor as wind gusts reduced substantially upon Alfred making landfall, heavy and persistent rainfall caused considerable damage albeit not at the levels initially expected.”