SYDNEY — Tropical Cyclone Alfred, which struck Southeast Queensland and northeastern New South Wales between February 28 and March 12, 2025, has caused nearly AU $2.6 billion in insured losses, according to initial estimates released by catastrophe data firm PERILS AG.
The storm, the seventh named cyclone of the season, has emerged as one of the most significant weather-related loss events in Australian history, with damages impacting property and motor insurance sectors extensively. PERILS’ preliminary figure stands at AU $2.568 billion, roughly USD $1.62 billion at the time of the event.
Cyclone Alfred first reached Category 4 intensity offshore before making landfall as a Category 1 cyclone near the Gold Coast. Prior to landfall, the system lingered offshore, bringing days of coastal erosion and damaging surf. Once it struck land, it unleashed torrential rainfall, widespread flooding, and destructive winds that left more than 300,000 homes and businesses without power.
The Insurance Council of Australia had earlier projected losses at around AU $1 billion. However, the longer duration and wide-reaching impacts of Alfred have led to substantially higher revised estimates. Claims have stemmed from wind damage, storm surge, flooding, and secondary issues like food spoilage due to extended power outages.
Darryl Pidcock, Head of Asia Pacific & Cyber at PERILS, noted the rarity and severity of the cyclone’s southern trajectory. “It has been over 50 years since a cyclone made landfall this far south,” he said, referencing Cyclone Wanda in 1974. “Cyclone Alfred combined the traits of a severe convective storm with prolonged rainfall and wind damage, leading to unprecedented losses.”
Global reinsurance brokers, including Aon and Gallagher Re, had anticipated significant impacts from the storm, originally predicting insured losses in the hundreds of millions. PERILS’ comprehensive data collection from insurers has now revealed the true scale of the event.
Cyclone Alfred stands as the most costly cyclone to hit the Australian insurance market since Cyclone Tracy, which devastated Darwin in 1974, marking a major milestone in the country’s catastrophe loss history.
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