Tropical Cyclone Ilsa, which made landfall around 120km northeast of WA’s Port Hedland on Thursday as a Category 5, set a new wind speed record while missing major population centres and infrastructure.

The cyclone reached 10-minute sustained wind speeds of 218kmh, breaking the previous record of Cyclone George set in 2007 by 13kmh.

Pardoo Roadhouse, located near the landfall point, sustained $4 million damage, Aon estimates, noting that despite its strength, the storm did not generate notable material damage as it passed over a sparsely populated area.

“Major towns and communities, like Port Hedland, were fortunately spared the worst of the cyclone,” Aon said.

Broome Insurance Brokers Director David Keys told insuranceNEWS.com.au that Ilsa struck just as WA residents were beginning to feel relaxed about 2023 storm risks.

“We thought we got away with it because this is actually quite late for a cyclone. The cyclone season normally finishes mid-to-end April, so this is a fairly late cyclone coming in,” he said.

Moody’s said that early assessments indicated buildings and a caravan park in Pardoo sustained significant destruction, while major towns and communities like Port Hedland and Bidyadanga were spared the worst of the cyclone.

“Assessments of damage ongoing in the landfall area and remote communities, mine sites and pastoral stations within the path of the cyclone,” Moody’s said.

IAG says it has been on standby to support impacted customers, its natural perils team of weather specialists closely monitored the cyclone, and its dedicated major event response team is prepared to support customers.

After landfall, Ilsa gradually weakened to a tropical low as it tracked further inland across the interior of WA and east of Kunawarritji on Friday. Hundreds of residents evacuated to shelters prior to the storm, and many are yet to return home as remote communities have been cut off by floodwaters.

The Australian Reinsurance Pool Corporation (ARPC) had declared Ilsa a cyclone event under the cyclone reinsurance pool, which is run by ARPC and backed by a $10 billion government guarantee. The claims period ended Sunday night.

Allianz, the first insurer to sign up to the government reinsurance pool, would have been “patting themselves on the back” for choosing to be protected from the cyclone exposure for policies issued since January 1, while other insurers still carry the risk, Mr Keys said. Sure Insurance is the only other insurer to join the pool so far. Large insurers have until the end of this year to join, and small insurers until the end of next year.

Ilsa formed from a tropical low off the coast of Indonesia on April 5 and became the sixth named storm of the current tropical cyclone season.