IAG faces $60 million-$80 million payout from storms

IAG faces $60 million-$80 million payout from stormsListed insurer IAG says it expects $60 million and $80 million of insurance claims in the wake of the storms that swept the east coast of Australia last weekend.

IAG, which has the NRMA Insurance, Coles Insurance, CGU Insurance and WFI Insurance brands, told the market it had so far received 10,000 claims in respect of the storms which had swept through Queensland, New South Wales, Victoria and Tasmania.

It had also put on additional employees at its call centres to reduce waiting times.

“While there remains a degree of uncertainty as to the ultimate outcome, IAG’s current expectation is that this event will result in a pre-tax net claim cost in the range of $60-80 million,” IAG said.

IAG has forecast its natural disaster claims up to $600 million for the 2016 financial year.

The Tasmanian government said yesterday that flooding in the state could leave a damage bill topping $100 million.

Earlier this week, the Insurance Council of Australia said there had been 14,500 claims across Queensland, New South Wales, Victoria and Tasmania, with estimated insured losses of $56 million.

However, these figures could still rise as people assessed the damage.


An award winning author and journalist, commentator, lecturer, and speaker, Leon is a freelance business journalist who covers a range of areas including politics, strategy, globalization, leadership and all the big trends ahead. His main skill is summing up all the news that’s around. For the last 30 years, his main focus has been on management issues. He also produces two podcasts for RMIT University, Talking Business and Talking Technology. Leon has worked for Fairfax, News Limited, AAP and the Herald and Weekly Times.

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