Claims from floods related to Tropical Cyclone Jasper are slowly mounting, though S&P says the area’s low property density and prevalent underinsurance should limit fallout for insurers. 

The Insurance Council of Australia (ICA) declared a “significant event” for impacted regions of Far North Queensland, which has been inundated with record rainfall since the cyclone made landfall last week as a category two storm, crossing the coast close to Port Douglas. 
 
Cleanup is underway after more than two metres of rain soaked the area in less than a week, seeing rivers set new highs and Cairns airport flooded. 

ICA told insuranceNEWS.com.au today that 2728 claims have been received by its members so far and the impact has been felt most significantly in communities between Innisfail and Hope Vale.  

"Insurers are well placed to meet claims associated with the cyclone and flooding,” ratings agency S&P said today.
 
“Modest claims numbers reported to date, in the low thousands, reflect the very low density of population and property in the region, and our expectation of underinsurance following cost and affordability constraints, and renters in the region less likely to be insured.” 

S&P says while damage arising from the floods could affect the agricultural and tourism sectors, major cities and commercial centers have not been directly affected, limiting overall economic losses.  

Cairns Regional Council Mayor Terry James said 1400 homes had been damaged or destroyed in the city. RACQ tells insuranceNEWS.com.au it has so far received 402 claims, made up of 272 home claims and 130 motor, while Sure Insurance has received 1121 claims. 

Suncorp says it has received around 900 claims, including more than 650 for homes, and its claims contact centres are available 24/7. EGM of Home Claims Customers Alli Smith says local conditions are hazardous and challenging. 

“We already have our local tradies on the ground stripping out damaged homes and helping make emergency repairs, and our customer support teams, assessors and additional builders are ready for deployment once safe,” Ms Smith said. 

“Our claims teams are also making proactive welfare calls, sending emails and SMSs with information on the claims process. We are also warning customers of scams that can often happen after severe weather events.” 

The Australian Reinsurance Pool Corporation (ARPC) had declared an event for Jasper, meaning that the Cyclone Reinsurance Pool would cover damage and related flooding for claims lodged with insurers that have joined the scheme.  

However, the ARPC declared the end of Jasper at 12am on December 14. The claims period for eligible losses under the pool cuts off 48 hours after the declared cyclone end. Only claims related to cyclone and flood damage within that period are eligible for the cover, which includes home, contents, residential strata, and small business policies up to a maximum sum insured of $5 million.

Under the ICA’s significant event declaration, it commences claims data collection, analysis, and reporting processes in consultation with members, and representatives work with government. 

"This significant event declaration activates additional services and resources to ensure timely and efficient assistance,” ICA COO Kylie Macfarlane said. 

The Daintree River peaked at 14.85 metres early Monday morning, more than 2 metres higher than the previous record set five years ago, and the Australian Defence Force has been called in to assist. 

Authorities are evacuating the town of Wujal Wujal amid the flooding emergency, with hundreds of people needing rescue after some areas were hit by almost a metre of rain overnight. 
  
The Australian Financial Complaints Authority has activated its significant event response plan which provides for early communication with relevant stakeholders and a more streamlined, expedited process for the resolution of related complaints. 

Government assistance includes freight subsidies for primary producers to alleviate the costs of moving stock and operating materials, the reconstruction of essential public assets like roads and bridges, and loans to assist with the repair and recovery of essential equipment, and for loss of income. 

The assistance is being provided through joint Commonwealth-state Disaster Recovery Funding Arrangements (DRFA).  

Federal Minister for Emergency Management Murray Watt says support has been activated for Cairns, Cassowary Coast, Cook Shire, Douglas Shire, Hope Vale, Mareeba, Tablelands, Wujal Wujal and Yarrabah in recent days. 

“We’re rolling out support as fast as the extent of the damage can be identified,” he said.