Australia’s formidable summer – with severe bushfires, hailstorms and the worst drought in many years – has led to additional pressures on insurers.

Bushfires in south-eastern Victoria have blackened more than a million hectares, damaging small towns and seriously affecting local economies. Many people in rural areas had their livelihood destroyed.

The Insurance Council of Australia (ICA) says the bushfires largely resulted in such typical rural losses as livestock, fences and property. Estimates of insured losses for the event are not yet available.

Dubbo, the Great Lakes district and Mount Kaputar in NSW were affected by bushfires, but ICA says claims were minimal.

Fires in Tasmania during the summer caused about $3 million in insured losses.

The drought has set alarm bells ringing, with conditions increasing combustibility and the likelihood of fires.
 
Leading sports underwriter Sportscover says the drought is severely affecting sporting organisations. Because of the hard, dry conditions, sporting clubs have had to shorten or cancel their seasons to protect their players from injury.

“Sporting clubs and associations need to ensure risk management processes are in place,” CEO Murray Anderson said.

He told Sunrise Exchange News Sportscover has not had an influx of personal injury claims arising from the drought and hasn’t needed to increase premiums.

“Pre-season training for some winter leagues has commenced, and we could see claims arising from ground hardness. We will work with clubs to help them overcome some of these risks, but it could take some months.”