Overview

• The Insurance Council of Australia reports average annual extreme‑weather claims of about $4.5 billion in the 2020s, nearly triple the 1990s level.
• Three declared catastrophes in 2025 have generated nearly $2 billion in insured losses, including about $1.43 billion from ex‑Tropical Cyclone Alfred, $289 million from North Queensland floods, and $248 million from Mid‑North Coast and Hunter floods.
• Munich Re data places Australia among the highest per‑capita loss countries over recent decades, typically second to the United States and recently edged by New Zealand after its 2023 disasters.
• A large share of damage remains uninsured, with just under half of annual losses not covered and an estimated 186,000 of 242,000 high flood‑risk homes lacking flood insurance, most in lower‑income areas.
• Rising costs are attributed to climate change, ageing infrastructure and growing exposure, as the national risk assessment flags up to 185,000 Queensland properties at very high risk and potential economy‑wide costs of about $40 billion a year by 2050, while NSW’s treasurer signals emergency services levy reform.