The Insurance Council of Australia (ICA) has classified the recent severe weather affecting New South Wales’s Mid North Coast and Hunter areas as a “Significant Event,” enabling insurers to initiate early-stage catastrophe response protocols.
This designation signals the start of data gathering and claims monitoring by the ICA in coordination with member insurers. The ICA has indicated that it may escalate the event to catastrophe status should the situation deteriorate, such as through increased claim volumes or a broader impact zone.
Authorities continue to monitor conditions as further rainfall is forecast.
The ICA has advised residents to follow directions from emergency services and prioritise safety during the ongoing emergency.
Homeowners who have experienced property damage are encouraged to notify their insurer as soon as conditions allow, regardless of whether the damage assessment is complete.
Andrew Hall, ICA chief executive, commented on the scale of the developing situation.
“The unfolding weather situation along the New South Wales Mid North Coast and Hunter regions is already breaking records, with evacuation orders in place for many towns and more rain forecast for the coming days,” he said.
He noted that parts of these regions had also been impacted during previous flood events, including in 2022.
“This flooding event is an ongoing emergency, so while it’s important people lodge a claim with their insurer as soon as they can, safety is our number one priority,” Hall said.
Insurance Australia Group (IAG), whose portfolio includes NRMA Insurance, CGU, and WFI, reported it has received 357 claims related to the storm since May 17.
The insurer has activated its major event response unit, deploying staff and contractors once conditions permit safe access.
Luke Gallagher, executive general manager of claims at NRMA Insurance, noted that the State Emergency Service has carried out numerous rescues due to flooding.
“The severe rainfall and rapidly rising floodwaters are very dangerous,” he said. “We urge everyone to make safety their priority and never drive through floodwaters.”
IAG teams are preparing to conduct property assessments and arrange temporary relief measures for policyholders. Support will include make-safe repairs and alternative accommodation for displaced customers.
Insurers are urging policyholders to collect evidence of damage – through photos, videos, and samples – and to consult their insurer before proceeding with repairs. Immediate assistance may be available, including short-term housing and financial support.
Policyholders are also encouraged to remove items that pose health risks, such as waterlogged carpets or spoiled food, and to avoid discarding items before they are documented for claims.
The recent NSW event is one of several high-impact weather events affecting the industry in 2025.
The ICA reported that nearly $1.5 billion in insured losses have been recorded from more than 126,000 claims so far this year.
The March system formerly identified as Tropical Cyclone Alfred has become the most expensive event, generating over $1.2 billion in claims. This surpasses the February floods in North Queensland, which accounted for around $250 million in losses.
