Australia has experienced a sharp escalation in extreme weather losses in 2025, with insured damage jumping to $4.8 billion — a staggering 700% increase on the prior year.

Queensland has borne the brunt of the damage, accounting for more than $4 billion of total insured losses. Four major extreme weather events impacted the state within 12 months, stretching recovery efforts for many communities and highlighting the growing severity and unpredictability of Australia’s weather patterns.

November Hailstorm Now the Costliest Event of the Year

A severe storm and hail event that swept across Queensland and New South Wales in November has now become the most expensive single insurance event of 2025.

• Nearly 93,000 insurance claims
• Estimated insured losses of $1.78 billion
• Widespread damage including vehicles, roofs, homes and flooding

Earlier spring storms affecting South East Queensland and Northern NSW added a further $900 million in losses across more than 41,000 claims.

While Ex‑Tropical Cyclone Alfred is no longer the most expensive event by dollar value, it still holds the record for claim volume, with over 133,000 claims totalling $1.5 billion.

Why the Numbers Keep Climbing

The final insurance cost of hail and storm events often takes months to emerge. Rising repair costs, supply chain pressures and late claim lodgements mean losses continue to build well after the weather has passed.

When broader economic impacts are included — not just insured losses — the total cost of extreme weather in 2025 is estimated to exceed $8.6 billion.

What This Means for Insurance and Renewals

Across 2025, insurers handled almost 294,000 extreme weather claims, nearly six times the prior year. The average claim cost rose 39%, reflecting higher repair and replacement costs.

Loss volatility remains a major challenge:

• 2023 insured losses: $2.35 billion
• 2024 insured losses: $585 million
• 2025 insured losses: $4.8 billion

This level of unpredictability directly affects insurer pricing, reinsurance costs and capacity — all of which are already feeding into 2026 insurance renewals.

A Strong Case for Mitigation

The scale and frequency of extreme weather events reinforce the need for greater investment in mitigation, including flood protection, drainage, dams and other infrastructure that keeps homes and businesses out of harm’s way.

Reducing exposure is one of the few proven ways to help control long‑term insurance costs and improve community resilience.

The Bigger Picture

Extreme weather losses are part of a broader rise in claims activity. In 2025, Australian general insurers paid out $58.9 billion in claims across 90 million policies — the equivalent of $226 million every working day.

What you should do now:
If your business, property or motor vehicles are located in storm‑exposed areas, it’s more important than ever to review your sums insured, policy limits and excesses — well before renewal.