Extreme weather caused $3.5 billion in insured losses in 2025

EXTREME weather events caused almost $3.5 billion in insured losses across Australia in 2025, according to new data released by the Insurance Council of Australia.

The losses stemmed from about 264,000 insurance claims linked to major weather events during the year.

Severe hailstorms across northern NSW and Queensland over five weeks in October and November accounted for more than $1.4 billion of the total damage bill.

The costliest single event was Ex-Tropical Cyclone Alfred, and resulted in more than 132,000 claims worth over $1.5 billion.

Five weather events were declared significant or catastrophic during the year, including floods in North Queensland in February and the Mid North Coast and Hunter region in May.

Severe spring storms across northern NSW and south-east Queensland in late October and early November resulted in $601 million in insured losses from 35,500 claims.

Further storms and hail later in November led to more than 70,000 claims and $814 million in insured losses across NSW and Queensland.

Smaller but locally severe events, including flooding in western Queensland, storms in regional Victoria and bushfires in Halls Gap, were not included in the figures.

Insurers expect the final cost of extreme weather in 2025 to rise as additional claims are lodged.

By comparison, insured losses from extreme weather totalled $581 million in 2024 and $2.35 billion in 2023.

The Insurance Council said it coordinated insurance hubs and community consultation sessions throughout 2025 to support affected communities during recovery efforts.

The start of 2026 has already seen further extreme weather, including bushfires in Victoria and monsoonal conditions in North Queensland.