New data released by the Insurance Council of Australia (ICA) shows that the total cost of extreme weather events that impacted Australia throughout 2025 generated AUD $4.8 billion in insured losses in 2025, up 727% on the previous year, as claim numbers spiked to 294,000, of which over $4.1 billion came from Queensland alone.however, the firm noted that the jump to $4.8 billion was largely driven by increased costs and further lodged claims from the two severe storm and hail events, which is generally typical of storm and hail events of this nature.The ICA noted that the total economic cost of extreme weather events in 2025, including insured losses and broader economic costs, is estimated to be over $8.6 billion.

As previously noted, insurers handled 294,000 claims from declared extreme weather events in 2025, almost six times the prior year, with average costs per claim jumping 39% to $16,471.According to the ICA’s latest analysis, the November storms have overtaken Ex-Tropical Cyclone Alfred as the costliest event of the year, drawing 92,900 claims and losses of $1.7 billion, despite the cyclone remaining the event with the highest claims count, with over 133,000 lodged totalling $1.5 billion.The severe storm and hail event across Queensland and New South Wales reached almost 93,000 claims totalling $1.78 billion, with damage varying from dents on car roofs and smashed windscreens, to uprooted trees and homes inundated with water.

In addition, the severe spring storms that affected South East Queensland and Northern New South Wales from earlier that month have now reportedly reached almost $900 million across 41,200 claims.In summary, the North Queensland floods resulted in 11,770 claims and incurred losses amounting to $316 million, while the floods in the Mid North Coast and Hunter regions experienced 14,700 claims and losses totaling $275 million.Additionally, the Bondi Event has reported 39 claims to date, with losses of $0.6 million.

The ICA further highlighted that insured losses from extreme weather events stood at $2.35 billion in 2023 and $585 million in 2024, which clearly underscores how difficult these costs are to forecast from one year to the next.“The unpredictability and intensity of extreme weather is growing, demonstrating the urgent need for the Government to invest in mitigation to protect Australia’s most vulnerable communities from the impact,” the ICA cautioned.In 2025, Australia’s general insurers reportedly paid $58.9 billion in claims, up 18% on the previous year across 90 million policies, the equivalent of $226 million every working day.

ICA CEO Andrew Hall, commented: “While Queensland is no stranger to extreme weather, four severe events impacting a single state in 12 months is significant, with many communities still on the road to recovery.Storms and hail are complex events that often have a long tail, meaning claims continue to grow months after the event as more are lodged and assessed.” Hall continued: “The insurance industry is very alive to supply chain challenges and pressures across the construction and transport sectors as a result of ongoing conflict in the Middle East.The reality is, these cost increases will add to the already stubbornly high price to rebuild and repair homes when they are damaged.

“The most effective way to protect communities and ease cost pressures is to build the flood levees, dams and other large-scale infrastructure that keep homes and businesses out of harm’s way.”.All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.