An updated assessment by catastrophe data specialist PERILS has reduced the estimated insurance losses from Cyclone Alfred to $2.25 billion.
The event, declared as an insurance catastrophe, affected areas in Queensland and New South Wales between Feb. 28 and March 12.
Cyclone Alfred reached the Queensland coast on March 7 as a Category 1 system after intensifying offshore to Category 4. Although wind speeds had diminished by landfall, the system brought heavy rainfall across Southeast Queensland and Northeast New South Wales.
The cyclone resulted in one fatality, widespread power outages, and interruptions to air travel and schooling. Approximately 300,000 homes and businesses were left without electricity.
The new figure reflects a 12% decrease from the initial projection of $2.568 billion issued in April.
The current estimate is based on data collected from insurers covering property and motor hull losses, consistent with PERILS’ reporting scope for Australia.
A detailed footprint by CRESTA zone and line of business is expected by mid-September.
PERILS reported that while the number of claims filed remained stable, the average loss per claim dropped.
“We have observed a 12% reduction overall since the six-week initial industry loss estimate was released, which is unusual compared to previous Australian events. While the number of claims has remained stable, the average claim amount has reduced from $16,000 to $14,000,” said Darryl Pidcock, head of Asia Pacific and cyber at PERILS, noting that much of this can be attributed to the large volume of food spoilage claims caused by extended power outages.
Pidcock added that wind-related losses were limited due to the weakening of the system prior to landfall, with water damage from sustained rainfall becoming the dominant cause of loss.
According to figures released by the Insurance Council of Australia (ICA), more than 126,000 claims have been filed across the industry from two major storm events in early 2025.
Alfred alone generated over 116,000 claims, estimated at $1.236 billion in insured losses as of May. This includes 20,000 new claims in the previous month, adding $267 million to the total.
In contrast, flooding in North Queensland in February accounted for around 11,000 claims and over $250 million in insured damages. Alfred-related claims average $10,000 each, compared to $23,000 for the North Queensland floods.
Following Cyclone Alfred, a post-storm review by James Cook University’s Cyclone Testing Station and Natural Hazards Research Australia examined how buildings withstood the system.
The report identified structural performance issues, including water ingress through window seals and vulnerabilities in balconies and façade finishes.
Researchers put forward 15 recommendations aimed at reducing future exposure. These included:
The review also called for stricter site management protocols, highlighting that unsecured materials posed risks during high-wind events.
