RACQ Insurance’s payouts for damage from a hailstorm in Gympie may reach $50 million – 50% more than was expected – as a result of opportunistic “storm-chasers”.

The insurer defines “storm-chasers” as third-party contractors who persuade householders to lodge “dodgy” and frivolous claims after an extreme weather event.

The total claims received from the Gympie hailstorm in October last year is more than 2760, which RACQ Insurance says is up to 50% more than expected for such an event.

Spokesman Paul Turner says the “storm-chasers” phenomenon can drive up insurers’ costs and directly affect reinsurance prices.

“We’re seeing a huge number of claims come in such a long time after the event, and we’re hearing from our members who are worried these ‘storm-chasers’ are trying to take advantage of them and make a buck,” he told insuranceNEWS.com.au.

“Often, [claimants] are up for expenses out of their own pockets for something they would never have lodged normally.

“What’s different in Gympie is the large number of late lodgements and what’s driving this.”

RACQ Insurance has paid out more than $40 million on an “unprecedented” number of claims for property damage, compared with the normal pattern for catastrophic weather events in Queensland over the past five years.

Mr Turner says reinsurers have questioned the third-party trend, which has also been seen in the US and Japan.

“We’d normally see about 20% of claims lodged after the four-week mark post-event,” Mr Turner said. “This event has seen almost 50% of claims lodged post the four-week mark and we’re still seeing between 40 and 50 claims lodged per month.

“We believe the ultimates may be more than $50 million. It’s a disturbing trend for Queensland that these people have moved in. It’s not something we’ve seen a lot of in the past.”

The Insurance Council of Australia said in December the Gympie storm “was initially not declared an insurance catastrophe. However, two months after the event, claims lodgements had steadily increased in a non-traditional trajectory.”

Last week RACQ Insurance warned Gympie residents to avoid contracts with third parties, because they may have to pay for expensive repairs themselves if their claims are not accepted. It may also affect the affordability of insurance for the broader community.

“As a result of this event, we may need to review our product offering and premiums for the area and apply additional diligence to claims,” Mr Turner said.