Ratings agency Moody’s believes Australian insurers will be able to manage the profit dent they will take because of the bushfires.
It is expected total insurance losses could come to $700 million (according to the Insurance Council of Australia), with 8985 claims made after September 2019 as of January 7, 2020.
“Moody’s expects Suncorp Group, through its subsidiary AAI Limited (financial strength A1 stable) and Insurance Australia Group Limited to receive the largest sum of gross claims, because of their significant market share in home and motor insurance,” Moody’s statement said.
“However, QBE Insurance Group Limited (QBE Insurance (Australia) Limited, financial strength A1 stable) and international insurers with large Australian operations such as Allianz SE (financial strength Aa3 stable) and Zurich Insurance Company Limited (financial strength Aa3 stable) will also be adversely impacted through higher natural peril costs as a result of the bushfires.”
According to the below graph, $700 million would not be anywhere near the top of most expensive natural disasters for insurers.