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Catastrophe claims costs heading for $2.5 billion

Claims costs from the three summer catastrophes continue to rise, according to Insurance Council of Australia (ICA) data.

Bunyip bushfire costs have risen to $31.9 million from 432 claims, while Sydney’s December hailstorm stands at $1.25 billion from almost 136,000 claims. The Townsville floods figure has reached $1.13 billion from 27,355 claims.

ICA says insurers are making good progress in settling claims, but the industry is still drawing criticism in some quarters.

Townsville tradesmen told media insurers have ignored local firms as the reconstruction progresses, while in NSW MPs have raised Sydney hailstorm claims concerns.

Berowra MP Julian Leeser says he has heard “numerous cases of inadequate service” from insurers and builders, and he visited ICA’s offices to hand over a dossier of complaints.

ICA GM Communications and Media Relations Campbell Fuller says insurers “have made rapid progress over the past 17 weeks to get families back into their homes and motorists back on the roads, despite the enormous pressure on builders, tradespeople and smash repairers”.

He says Sydney had already endured severe summer storms, which put repair supply chains under pressure before the December 20 hailstorm struck.

“Insurers are focused on working with property owners to agree on scopes of works, particularly for repairable roofs, in line with their policies,” he said.

“The industry has been harnessing available repairers, tradespeople and builders who are qualified, reputable and competitive to undertake and complete outstanding work.”