As the insurance industry reaches the one-year mark since ex-Tropical Cyclone Alfred, insurers and peak bodies are using the anniversary to restate concerns about climate-related losses, resilience funding, and cyclone preparedness across Australian communities and businesses.
The Insurance Council of Australia (ICA) is again calling for higher levels of public investment in climate and disaster resilience ahead of the May federal budget, citing Tropical Cyclone Alfred as one example of mounting natural peril costs. Alfred, which made landfall in March 2025, led to about $1.5 billion in insured losses and an estimated $2.7 billion in total economic costs. ICA frames the event as part of a broader series of extreme weather events that have affected claims experience and exposed financially vulnerable communities.
Since 2022, severe and catastrophic weather events nationally have generated $15.4 billion in insured losses, with total economic costs estimated at around $28 billion. Over the same period, major flood events have accounted for $12.9 billion in insured losses and about $23 billion in wider economic impacts, with lower-income and highly exposed regions carrying a significant share of the burden. ICA maintains that public spending on mitigation and adaptation is not keeping pace with the scale of the risk. Funding through the federal Disaster Ready Fund since 2022 equates to roughly $1 for every $39 lost to extreme weather over that period.
In its pre-budget submission, ICA has proposed the creation of a $30 billion Flood Defence Fund over 10 years, jointly funded by the federal and state governments. The proposed fund would support flood mitigation infrastructure in high-risk locations, home strengthening, and targeted buybacks where other mitigation options are limited. The council is also calling for the completion and ongoing maintenance of a national hazard baseline, with data made publicly available to inform land use planning, pricing, and risk decisions by governments, insurers, businesses, and households.
In addition, ICA has recommended that the Commonwealth encourage states and territories to remove what it describes as “unproductive taxes” on general insurance, arguing these taxes add to premium costs and widen the protection gap. ICA CEO Andrew Hall said Alfred underscored the implications of focusing on recovery rather than mitigation. “The next event is not a matter of if but when, and every budget that passes without serious investment is a gamble with Australian lives and livelihoods. Every dollar we spend rebuilding the same home after the same flood is a dollar we’re not spending building new ones,” Hall said. He said the council has been in discussions with the federal government on policy options, and that measures such as the Disaster Ready Fund and the National Climate Risk Assessment indicate recognition of the risk. He added that the May budget will be a test of whether funding commitments match the assessed level of exposure.
IAG has marked the anniversary by setting out how ex-Tropical Cyclone Alfred affected its catastrophe response across brands including NRMA Insurance, CGU, WFI Insurance, and ROLLiN’. Ex-Tropical Cyclone Alfred made landfall between Brisbane and northern New South Wales in March 2025. It was the first tropical cyclone to impact that section of coastline in more than 50 years and was among the costliest global disaster events recorded in 2025.
According to IAG, the cyclone led to the activation of its 24/7 Major Events team and Major Event Command Centre, coordinating claims handling and field operations across two states. One case involved NRMA Insurance customer David, whose property was hit when a eucalyptus tree fell through the garage during strong winds and heavy rain. “All of a sudden, WHACK! A 30-metre eucalypt came down from the back of the property and went straight through the middle of our garage roof. My daughter had gone to a friend’s place for the night. Had she been here it would have been a different kettle of fish because her bedroom’s right next to the garage,” David said.
NRMA Insurance property assessor Sean Freeburn attended the property soon after the claim was lodged to inspect the damage, confirm the family’s safety, and arrange emergency make-safe works to limit further weather-related damage. “Throughout the repairs, I’ve kept in regular contact with David and his wife, making sure everything is progressing according to the repair schedule and that they’re happy with the work being done,” Freeburn said.
Property assessing manager Tony Wood said the assessment teams dealt directly with impacted customers on site. “When we arrive at a customer’s property, it’s often after their home has been seriously impacted. We see the emotion that comes with that moment, and our presence is about reassurance and support. Our team works face‑to‑face with customers to explain what’s happened and how we’ll help them move forward in the recovery,” Wood said.
IAG has also described how its data and connectivity tools were deployed during Alfred, positioning the event as a case study in catastrophe management practices. The insurer activated its 24/7 Major Event Command Centre six days before Alfred’s landfall, using its proprietary Situational Awareness Map (SAM) to monitor the cyclone and map exposure. SAM draws on satellite, property, policy, and environmental data to provide a consolidated view of risk concentrations and likely impacts.
IAG executive manager of property claims fulfilment Scott Lindsay said SAM played a central role in preparation and response. “The data we received enabled us to send more than 500,000 text and email messages urging customers in the cyclone’s path to prepare. When natural disasters strike, SAM and other data sources helped us to quickly triage damage assessments, prioritise emergency repairs, and pre-arrange temporary accommodation for customers across Northern NSW & SE QLD,” Lindsay said.
To address connectivity issues during prolonged power and telecommunications outages, IAG worked with Optus to trial portable Starlink micro terminals. The terminals provided satellite internet links for assessors in the field, allowing them to upload damage assessments in near real time, stay in contact with central teams, and support mobile claims services delivered via NRMA Insurance Help Response Vehicles. Across its Alfred response, IAG says it completed more than 2,300 emergency make-safe repairs, placed 126 customers in temporary accommodation, and settled more than 3,400 food spoilage claims linked to extended outages. IAG executive manager of natural perils and meteorologist Peter Chan said Alfred provided insight into potential changes in cyclone exposure. “It’s critical that we help reduce the risk and impact of severe weather through mitigation and improved land use planning, as well as continue to invest in preparedness and response capability,” Chan said.
Risk specialists are also pointing to a gap between interest in cyclone risk and practical preparation, despite high public attention on Alfred. Google Australia’s Year in Search 2025 report found that “Cyclone Alfred” was the most-searched term nationwide, while “how to prepare for a cyclone” was the second most-asked “how-to” query. The findings indicate a strong level of information-seeking around cyclone risk and preparedness. FM operations chief engineer Michael Hunneyball, who advises on cyclone resilience for critical infrastructure across the Asia-Pacific region, said search data can act as a signal of what risks are front of mind. “Google’s ‘Year in Search’ represents a real-time barometer of the risks Australians are thinking about and acting on. The data reflects yet another significant year for natural hazards, showing preparedness and risk management are top-of-mind for Australian people and businesses,” Hunneyball said.
Hunneyball cautioned, however, that online interest does not necessarily translate into structured planning. “Public awareness is pivotal for protecting homes, businesses, and critical infrastructure during natural disasters. Preparedness searches often spike after major events, but the challenge is building that knowledge before the hazards strike, so you’re able to respond quickly and with certainty,” he said, adding: “In a year defined by climate extremes, global instability, and rapid technological change, Australians’ search habits show that resilience thinking is moving into the mainstream, and that’s something every industry can build on. As the number and severity of natural disasters like cyclones rise, there has never been a more important time for businesses to revisit their cyclone response plans and ensure they remain educated and prepared.”
