Mr Guse added that insurers like QBE had certainly turned into a “little more risky” asset for potential investors though the sector was focused on tackling its operating risks by active lobbying of governments to seriously act on climate change.
QBE recently announced plans to set aside an additional US$685 million (around AU$888 million) for claims relating to catastrophic weather events in 2021 after surpassing its US$550 million cap in 2020 due to the severe bushfires and the unprecedented hurricane season in Australia’s northern hemisphere.
January set the momentum for subsequent months when catastrophic bushfires ravaged through Victoria and NSW, being fueled by extreme heat experienced in eastern Australia at the start of the year.
According to the NSW Rural Fire Service (RFS), 54 bushfires ravaged through the state, causing a severe two-day heatwave which led to unprecedented temperatures in November.
A grass fire happening at the Southern Expressway at Lonsdale has brought a heavy smoke haze that’s causing poor visibility for many drivers.
The storm triggered a warning from the Department of Fire and Emergency Services advising people living in Western Australia’s southwest, Great Southern and South Coastal as well as in Central Wheatbelt and Lower West districts to take immediate steps to mitigate the risks.
Since La Niña’s announcement a fortnight ago, widespread showers have been recorded and it seems we have to start getting used to flooding, as suggested in the BOM’s October—April outlook.
A massive bushfire is currently scorching through more than 300 hectares of land along the Pacific Highway on the outskirts of the NSW-Queensland boundary.
Claims filed by clients affected by bushfires and dangerous storm events resulted in underwriting losses of $991 million in the three months period ending March, a huge shift from the $587 million in underwriting profits realised the previous quarter.
While the Australian Financial Complaints Authority (AFCA) acknowledged that bushfires close-by had a significant impact on the small business, the claimant’s policy with Suncorp-owned AAI clearly stipulated that any loss or damage suffered must be physical in nature.