IAG Updates Claims Estimates for Victoria Storms, NZ Quakes

The Insurance Australia Group has advised that its Australia Direct and CGU businesses have, “received approximately 20,000 claims following the hailstorms and related severe weather which occurred in Victoria around Christmas Day. The majority of claims relate to vehicle damage caused by hail, although there is also damage to homes and other buildings.”

Managing director Mike Wilkins noted that the Group’s businesses, which distribute insurance predominantly under the RACV Insurance and CGU brands in Victoria, were focused on providing their customers with the help they need.

“Our teams are working hard to assist our customers,” he stated. “We have placed additional staff in call centers to process claims, provided emergency accommodation where needed, established a number of temporary hail assessment sites and are well-advanced with emergency make-safe repairs.”

However, Wilkins indicated that it is too early to provide an estimate of the Group’s total claims costs related to the severe weather in Victoria. IAG will update the market as soon as it is in a position to do so.

In addition IAG noted: “Since 23 December 2011, the Canterbury region of New Zealand has suffered a number of further earthquakes and aftershocks. Based on early claims activity in the State and NZI businesses, IAG does not currently expect this to be a material claims event. The bulletin added that when these events occurred under its catastrophe reinsurance cover, which operated until the 31st of December 2011, “the Group’s maximum potential exposure to a single event was approximately A$250 million [US$256.65 million].

Source: Insurance Australia Group