Insurance Australia Group Limited (IAG) today provided an update on its claims experience arising from the extreme weather conditions which are affecting so many people across the State of Queensland.
IAG Managing Director and CEO, Mr Mike Wilkins, said the Group’s businesses, which distribute insurance predominantly under the NRMA Insurance and CGU brands in Queensland, have mobilized assessors and are focused on providing customers with the help they need during this particularly difficult time.
“Claims are being prioritised based on the severity of damage, and customers are encouraged to lodge their claims as quickly as possible,” Mr Wilkins said.
“Our priority is to assist both our customers and our people in Queensland.”
Mr Wilkins confirmed IAG had received approximately 1,200 claims arising from the heavy rain associated with Tropical Cyclone Tasha which commenced in late December 2010. While it remains too early to provide a definitive claim cost for this event as claims are still being assessed, IAG’s current expectation is that the net claim cost will be between $10 million – $30 million taking the total natural peril claim cost for the six months to 31 December 2010 to an estimated $120 million – $140 million.
IAG has also received approximately 2,400 claims from the more recent severe weather in South East Queensland which started in early January 2011. Given the ongoing nature of this event, it remains too early to determine the likely claim cost which will be included in the Group’s result for the second six months of this financial year.
Mr Wilkins said IAG’s renewed catastrophe reinsurance programme for the year commencing 1 January 2011 was structured similarly to that which operated in 2010. Under the programme the Group’s maximum event retention for a first event in calendar year 2011 is $150 million.
IAG will announce its half year results on 24 February 2011.
Source : IAG Press Release