ICA declares North Queensland floods a ‘significant event’

The Insurance Council of Australia (ICA) has declared the floods impacting regions of North Queensland since January 29, a ‘significant event’.

The flooding has forced thousands to evacuate, cut power to homes, and washed away sections of a major highway. The hardest-hit areas include Townsville, Innisfail, Ingham, Gordonvale, and Cardwell.

Authorities warn that record-breaking rainfall is expected to continue, with some areas already receiving nearly 1.3 meters (4.2 feet) of rain since February 1, causing rivers and reservoirs to overflow.

Residents in the so-called “black zone” of the floods—including six Townsville suburbs—have been advised not to return home due to ongoing risks from the rising Ross River.

According to Australia’s Bureau of Meteorology, the region has experienced six months’ worth of rainfall in just three days.

The Townsville Local Disaster Management Group has warned that up to 2,000 homes could be flooded as water levels continue to rise, with peaks expected on February 4.

The ICA’s preliminary catastrophe processes have been activated to help assess the insurance impact of the flood event.

If claim numbers rise significantly, if the affected area expands, or if insurers determine the situation requires it, the event could be declared an insurance catastrophe.

Andrew Hall, ICA CEO, said, “The volume and intensity of this weather has already caused damage across parts of northern Queensland with the risk of flash flooding expected to continue in the coming days.

“Insurers understand the impact of these extreme weather events and will be move quickly to ensure communities receive the assistance they need as soon as possible. We are working with the Queensland authorities and will keep the community updated as situations evolve.

“Safety is our number one priority, so we urge residents in these areas to remain alert and listen to the advice of local emergency services.”

In February 2019, the same region experienced severe flooding, with Townsville particularly affected. The ICA estimated insured losses from that event at AU$1.243 billion (US$844.2 million). Similarly, catastrophe loss data aggregator PERILS settled on its fourth and final estimate at AU$1.243 billion (US$830 million).

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