Flood of claims as insurers tally costs

INSURERS are receiving the first claims from Cyclone Debbie as concerns emerge about any premium rise from this week’s disaster.

Suncorp, one of North Queensland’s major insurers, had notched up more than 300 claims by yesterday afternoon.

Damage had come from extreme winds and torrential rain, a spokesman said.

RACQ recorded 170 claims and expected them to keep coming over several weeks.

QBE noted initial claims had been somewhat small, and linked to problems such as damaged fences and flying debris. But of six insurers contacted yesterday, only RACQ had so far recorded an initial storm- surge claim.

That could mean the industry largely avoids a public backlash because, while some major brands covered storm- surge claims occurring at the same time as cyclone damage, a few providers, such as CGU, did not. Potential flooding was also playing on insurers’ minds.

Insurers have deployed teams to assess the damage.

IAG, owner of NRMA and CGU, said it was using Facebook Live postings and might deploy drones to take damage pictures in hard- to- get areas.

Concerns were also emerging about the cyclone’s impact on premiums, but insurers said any effect was unclear.

Youi, for example, said it could only “determine that once the entire costs ( of the disaster) are made clear”.

An Australian Government Actuary report noted home and contents premiums in North Queensland rose 80 per cent from fiscal 2006 to 2013, while the national average rose 25 per cent. around the North where it was safe to do so. Deliveries were cancelled yesterday in Ayr, Bowen, Airlie Beach, Charters Towers, Mackay, Moranbah, Sarina and Agnes Waters.

Post offices remain closed in cyclone- hit Bowen, Collinsville, Giru, Hamilton Island, Mackay and Proserpine.