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Insurers close in on final bushfire claims

The insurance cost of last month’s Victorian bushfires now exceeds $1 billion, with about 80% of the loss assessments completed.

Insurance companies say loss adjusters are gaining wider access to the affected areas.

The Insurance Council of Australia (ICA) says member companies have completed 80% of assessments for affected domestic, commercial, farming and industrial properties.

Insurers have received 8150 claims with estimated insured losses of $1.02 billion, and have paid $160 million in emergency payments to affected policyholders.

More than 2000 residential properties were destroyed in the fires. Insurers have received 1468 claims for total losses, indicating up to 30% of destroyed properties were not insured.

Some 83% of the claims processed so far relate to home and contents policies, with motor policies accounting for the remaining 17%. Domestic policies make up 76% of total claims, while 24% are for farming, commercial and industrial losses.

Some affected areas, including the town of Marysville, remain closed to loss adjusters today due to safety reasons and coroner restrictions. Access is expected to be granted later this week.

The bushfire death toll, which remains at 210 at this point, is among the worst Australian natural disasters on record. But the insured costs fall well short of the 1989 Newcastle earthquake, which was responsible for inflation-adjusted losses of $4.3 billion.

ICA said in a statement that the Victorian Rebuilding Authority and the insurance industry continue to work closely preparing for “the rebuilding of properties where policyholders have decided to rebuild”.

“An important issue that will guide the rebuilding effort will be a decision by Government on appropriate bushfire zone building standards,” ICA said.