IAG Faces Multi-Million Dollar Bill For Storm Related Claims

Post by Sharat on June 3, 2009 · Under Company News, insurance · Comment

Australian insurance major, Insurance Australian Group (IAG) says it now believes it will have to cover between $25 -35 million in claims by clients ravaged by storms in northern New South Wales and south-east Queensland.

IAG in a statement said that its subsidiaries CGU, and NRMA insurance had received some 4000 claims mostly in relation to property damage, though there were some commercial and vehicular damage.

The amount being claimed is not large enough to trigger IAG’s main reinsurance contracts, but would contribute to the erosion of its aggregate cover which currently amounts to $100 million. IAG says it has reinsurance of $150 million for aggregate events of more than $150 million.

Rival Suncorp Metway last week said that its total costs related to storms and weather events was in excess of its first half allowance by $70 million, after receiving claims related to the Queensland and northern New South Wales floods.

Last week Suncorp-Metway revealed costs for storms and weather events had exceeded its half-year allowance by $70 million after it received claims relating to recent flooding in Queensland and northern NSW. Suncorp’s allowance for major weather events is $120 million for every half year.

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