Cyclone Pool to Address $1.7 Billion in Claims After Alfred's Impact

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 destruction caused by Ex-Tropical Cyclone Alfred is projected to demand approximately $1.7 billion in claims from the reinsurance pool, according to Australian Treasurer Jim Chalmers.

As the cyclone swept across Queensland on March 8, over 63,000 claims have already been lodged with insurers.

The insurance coverage through the cyclone pool ceased 48 hours later, highlighting the widespread devastation in its wake.

Treasurer Chalmers, speaking from Queensland, emphasized that the government has earmarked about $1.2 billion in the forthcoming budget to aid cyclone-hit communities, focusing on both immediate hardship alleviations and long-term infrastructure rebuilding. This budgetary provision is critical as it supports local communities in their recovery efforts, reinforcing infrastructure, and ensuring that the social safety nets are equipped to handle such crises.

The Insurance Council of Australia has classified the event as a catastrophe, further underpinning the magnitude of the response required. Chalmers noted the ongoing dialogues with insurance providers, acknowledging the potential rise in building costs due to increased demand for reconstruction services, while aiming to contain inflationary pressures.

With insurance premiums already a key driver for inflation, concerns are rising over the potential affordability of insurance in disaster-prone areas. Chalmers emphasized the need for continuous government intervention to mitigate these costs. The cyclone pool, established as a financial safety net, was deemed significant but in need of further impact on insurance premiums.

Expected to announce the 2025-26 budget soon, Chalmers, alongside Assistant Treasurer Stephen Jones and MP Daniel Mulino, remains engaged in assessing additional measures stemming from the 2022 floods inquiry. The goal is to bolster market resilience and effectiveness while curbing insurance-related inflation. Despite advancements in affordability and market stability, Chalmers acknowledged the enduring challenges within the insurance sector.

Published:Monday, 7th Apr 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

APRA Implements Cap on High DTI Home Loans to Address Housing Market Concerns

13 Dec 2025: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at mitigating risks in the housing market. Effective February 2026, APRA will impose a cap on high debt-to-income (DTI) home loans, limiting such loans to 20% of new home lending. This measure applies to both owner-occupiers and investors, with the exception of new housing developments. - read more

CHU's 2025 State of the Strata Market Report: Key Insights for Property Owners

13 Dec 2025: Paige Estritori

CHU, Australia's leading strata insurance underwriting agency, has released its 2025 State of the Strata Market report, providing a comprehensive analysis of current industry trends and challenges. The report indicates that strata insurance premiums have experienced a modest increase of 2.8% over the past year, rising from an average of $954 to $981 per lot annually. This growth rate is notably lower than the 3. - read more

NSW Fair Trading Proposes New Powers to Ensure Strata Property Maintenance

13 Dec 2025: Paige Estritori

The New South Wales (NSW) government has introduced a new tranche of strata reforms to parliament, aiming to enhance the maintenance and safety of apartment buildings across the state. A key component of these reforms is the proposal to grant NSW Fair Trading the authority to enter any apartment building without a warrant if there are reasonable grounds to believe that the owners corporation is failing to maintain common property adequately. - read more

ACCC Halts IAG's Acquisition of RAC Insurance Over Competition Concerns

11 Dec 2025: Paige Estritori

The Australian Competition and Consumer Commission (ACCC) has recently blocked Insurance Australia Group's (IAG) proposed acquisition of RAC Insurance Pty Limited. This decision underscores the regulator's commitment to maintaining competitive dynamics within Western Australia's insurance market. - read more

Suncorp Reaches Maximum Reinsurance Retention Following Severe Storms in Queensland and NSW

11 Dec 2025: Paige Estritori

Recent supercell thunderstorms in South East Queensland and northern New South Wales have led to a surge in insurance claims, prompting Suncorp to reach its maximum reinsurance retention of $350 million. The insurer has reported over 10,000 claims related to these events, with approximately half pertaining to home damages and the other half to motor vehicles. - read more

Click for more Insurance News

Farm Insurance Articles

Custom Farm Insurance: Tailoring the Perfect Policy for Your Agricultural Needs

Welcome to the world of farm insurance, where no two policies are the same, just as no two farms mirror each other in operations and risks. As a farmer, you are acutely aware that your agricultural endeavors bring a unique set of challenges and needs. Recognizing this diversity is the first step in protecting your livelihood. - read more

New Technologies in Crop Protection: How Precision Agriculture Enhances Insurance Coverage

For generations, farmers have faced the challenge of protecting their crops from an array of threats, such as pests, diseases, and extreme weather. Traditional crop protection strategies have relied heavily on blanket approaches, as in using widespread pesticide application, or generalized irrigation systems, regardless of the varying needs across a field. While these methods have had their successes, they also come with limitations in efficiency, environmental impact, and the precision needed for optimal crop health and yield. - read more

Essential Coverage: The Top Insurance Policies Every Australian Farmer Should Consider

Welcome to a critical discussion surrounding the stability and protection of your farming enterprise. In the unpredictable world of agriculture, insurance plays a pivotal role in safeguarding the future of your business. As we delve into the intricacies of insurance coverage, we aim to establish a strong foundation for enduring success in the farming industry. - read more

Understanding the Different Types of Farm Insurance Coverage

In the world of farming, risks are an everyday reality. Whether you're dealing with unpredictable weather, pest invasions, or fluctuating market prices, the uncertainties can be overwhelming. This is where farm insurance comes into play. - read more

Unpacking the Fine Print: Common Misunderstandings in Farm Insurance Policies

Welcome to our discussion on farm insurance, a crucial subject for every Australian farmer. Whether you're seasoned in agricultural ventures or just starting out, the world of insurance can often seem daunting and complex. - read more

Knowledgebase

Copayment:
A fixed amount you pay for a covered healthcare service, usually when you receive the service.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.