Severe Weather in Eastern Australia Sparks Insurance Claims Spike

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The New South Wales State Emergency Service (SES) has reported over 2,500 incidents related to the severe conditions, indicating a public safety crisis. As the storms continue, the SES anticipates that the number of incidents will rise, particularly across the Mid North Coast and northeastern regions of the state.

Among the most affected areas, issues such as fallen trees, downed powerlines, and property damage have dominated the dispatch calls. Within a mere 24-hour period, more than 143,000 homes experienced power outages, showcasing the widespread impact of the storms.

Insurance companies like Allianz have already begun to respond, with more than 80 claims received as of 10 a.m. the next day. “High callout numbers from the SES typically indicate an uptick in property claims, and we’re prepared for that,” stated a company spokesperson, highlighting the industry's readiness to handle the aftermath of such severe weather events.

As the weather conditions remain volatile, further claims are anticipated in the days to come. The SES has reported tragic incidents, including the death of an elderly man in Cowra after a tree struck his vehicle, and injuries sustained by individuals in Wagga Wagga due to other storm-related hazards.

Gusts exceeding 100 kilometers per hour have been recorded at various locations, including Wagga Wagga and Sydney's Kurnell, emphasizing the extreme nature of the wind associated with these storms. Queensland has also faced its share of challenges, notably in Stanthorpe, where substantial hailstorms have wreaked havoc.

Among the hardest-hit areas identified by Suncorp are Maitland and Wagga Wagga in NSW and Stanthorpe in Queensland. “In light of the ongoing weather forecasts, we are taking steps to support our affected customers and are proactively reaching out to them,” said a Suncorp representative, underscoring the commitment of insurance providers to assist those in need during this natural disaster.

According to the Bureau of Meteorology, hailstones measuring up to 13 centimeters have been observed south of Grafton, with seven-centimeter stones reported near Kyogal later in the afternoon. A warning for large hail, damaging winds, and heavy rainfall remains in effect for parts of the Northern Rivers, Mid North Coast, and Northern Tablelands districts.

While communities begin to assess the damage and reconstruct following these storms, the impact on local economies and the insurance industry is expected to be significant. Events like these remind us of the power of nature and the importance of preparedness and responsiveness within the financial services sector.

This report captures insights from various sources, including the SES and major insurance firms such as Allianz and Suncorp, illustrating the extensive repercussions of this recent weather outbreak.

Published:Friday, 17th Jan 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Clear

What Allianz’s Farm Cover Revamp Means for Farmers

21 Jul 2026: Paige Estritori

Allianz Australia has refreshed its farm pack insurance, with the updated product announced on 20 July 2026. For farmers and rural property owners, the significance is less about one insurer changing a product and more about what it signals across the broader farm insurance market: insurers are trying to make cover easier to understand while adjusting policy features to better match modern farming operations. - read more

What Bushfire Resilience Ratings Mean for Farmers

07 Jul 2026: Paige Estritori

More Australian insurers are now recognising household bushfire resilience ratings, a development rural and regional property owners should watch closely as risk-based pricing becomes more visible across the insurance market. NAB and CommBank insurance brands have joined the program, alongside existing participants including NRMA Insurance and Suncorp, meaning a significant share of the home insurance market is now engaging with assessed bushfire mitigation. - read more

Cyclone Pool Delivers Relief, But Farmers Still Need to Check Cover

30 Jun 2026: Paige Estritori

The Australian Competition and Consumer Commission�s final monitoring report on the cyclone reinsurance pool has delivered a mixed message for rural and regional northern Australia. The pool appears to have helped ease some premium pressure for medium to high cyclone-risk areas, including reductions across home, strata and small business building and contents cover. For farm families and agribusinesses in cyclone-exposed regions, that is welcome news after years of rising costs and limited choice. - read more

El Niño Outlook Puts Farm Risk Planning Back in Focus

23 Jun 2026: Paige Estritori

Australia’s latest El Niño declaration has turned seasonal risk planning into an immediate priority for many rural and regional businesses. The Bureau of Meteorology confirmed El Niño conditions in mid-June, with forecasts indicating the tropical Pacific is likely to keep warming through the coming months and remain a factor until at least the end of the year. - read more

NRMA's Departure from Farm Insurance: What It Means for Australian Farmers

16 Jun 2026: Paige Estritori

In a significant shift within the Australian insurance landscape, NRMA has announced its withdrawal from the farm insurance market, ceasing the sale of new policies as of July 1, 2025. This decision affects both Hobby Farm Insurance and Rural Farm Insurance offerings, leaving many farmers in search of alternative coverage options to safeguard their livelihoods. - read more

New Partnership Strengthens Risk Management in Australia's Protected Cropping Sector

16 Jun 2026: Paige Estritori

Protected Cropping Australia (PCA) and Achmea Farm Insurance have announced a strategic partnership aimed at bolstering risk mitigation and resilience within Australia's protected cropping sector. This collaboration seeks to empower growers by providing tailored insurance solutions and promoting best practices in risk management. - read more

Click for more Insurance News