April Queensland hailstorm claims reach A$604m

PERILS has released its loss footprint for the April 2020 Central Queensland hailstorms, which includes detailed property and motor loss data at a postcode level. 

Severe thunderstorms developed over the Central Highlands and Capricornia districts in Queensland on the afternoon of 19 April producing hail of 8 to 10 cm in diameter. This was an unusual event for the region given the overall size of the hail and the fact that it occurred late in the season.

The industry loss figure, which covers the hailstorms which occurred on 19 April 2020, amounts to A$604m. This figure is based on detailed loss data collected from the majority of the Australian insurance market.

The largest hail impact was recorded in Rockhampton and Yeppoon, where the storms caused extensive damage primarily to residential homes and commercial properties. Wind gusts of up to 100km/h were also recorded in Mackay. Some surrounding rural areas were also impacted by the hail, which caused damage to crops.

Property damage constituted 95% of the total insured losses with residential property accounting for 79% and commercial property 16% respectively. Motor losses, personal and commercial lines combined constituted a further 5% of the industry loss.

During the first three months following the event the insured losses were not expected to exceed the PERILS event reporting threshold for Australia of A$500m. However, in more recent months, the insurance industry has experienced unusually late and significant claims development which has resulted in the company issuing its six-month industry loss footprint report.

Darryl Pidcock, Head of PERILS Asia-Pacific, commented: “This event was particularly challenging for the industry not only because of the large hail size so late in the season, but also the late and significant claims development.”