Extreme Weather Cost $3.5 Billion In 2025

Extreme weather events cost almost $3.5 billion in insured losses from 264,000 claims in 2025, with the severe hailstorms over five weeks in October and November accounting for more than $1.4 billion of these losses, according to new data released today by the Insurance Council of Australia (ICA).

Last year saw five events declared significant or catastrophic by the Insurance Council, including the North Queensland Floods in February, Ex-Tropical Cyclone Alfred in March, Mid North Coast floods in May, and two Severe Storm events in October and November. (See table below and in attached PDF)

While the costliest event for 2025 was Ex-Tropical Cyclone Alfred which saw 132,000 claims lodged and more than $1.5 billion in insured losses, the hailstorms of October and November left similar damage bills.

The Severe Spring Storms which impacted South-East Queensland and Northern NSW from the end of October through to early November resulted in $601 million in insured losses across 35,500 claims.

In late November, more severe storms and hail impacted the two states resulting in 70,200 claims and $814 million in insured losses. Together, losses from the two events totalled $1.4 billion.

Other more locally severe events included flooding in Western Queensland, storms in Casterton and Harden, and bushfires in Halls Gap. These smaller events are not counted in this data.

Insurers expect further claims will be made from these events, meaning the eventual cost of extreme weather in 2025 will grow.

In comparison, insured losses from extreme weather events in 2024 totalled $581 million and from 2023 totalled $2.35 billion, demonstrating the unpredictable nature of extreme weather year on year.

To support communities in their recovery throughout 2025, the Insurance Council coordinated three Insurance Hubs in the immediate aftermath of events and 13 community consultation sessions.

The first few weeks of 2026 has also seen significant extreme weather activity, from bushfires in Victoria to monsoonal weather in North Queensland.

Insurers are prioritising claims from these events and are supporting communities in their recovery, with many insurers maintaining strong on-the-ground presence across parts of Victoria.

Table 1: 2025 extreme weather insurance claims as at December 2025. Data source: Insurance Council of Australia (ICA).