Hail storms top insurance list for 2025 amid warning war will drive up repair costs

Tuesday, 21 April 2026 16:21

The Insurance Council of Australia has warned war in the Middle East will only increase the costs associated with repairing and rebuilding homes after extreme weather.

Severe hail storms that pummelled Queensland's south-east and northern New South Wales last year left a higher insurance bill than ex-Tropical Cyclone Alfred, the Insurance Council of Australia (ICA) has revealed, as it warns war in the Middle East will only increase the costs associated with repairing and rebuilding homes after extreme weather.

The ICA has upped its last total for extreme weather-related insurance losses in 2025 from $3.5 billion to $4.8 billion due to increased costs and further claims being lodged.

The severe storm and hail event in November led to almost 93,000 claims totalling $1.78 billion, including hail damage to cars, glass and roofs, as well as homes inundated with storm water and damage caused by uprooted trees.

LIVE UPDATES: Trump administration linked to suspicions of insider trading

In comparison, Alfred had a higher claims count, at 133,000, but cost around $1.5 billion.

Queensland was home to four of the five most expensive extreme weather events, with the North Queensland floods and spring storms in south-east Queensland costing $316 million and $895 million respectively.

"While Queensland is no stranger to extreme weather, four severe events impacting a single state in 12 months is significant, with many communities still on the road to recovery," ICA CEO Andrew Hall said.

"The insurance industry is very alive to supply chain challenges and pressures across the construction and transport sectors as a result of ongoing conflict in the Middle East.

"The reality is, these cost increases will add to the already stubbornly high price to rebuild and repair homes when they are damaged."

The ICA also found across the country, insurers handled almost six times as many claims from extreme weather in 2025 than the year before, costing $4.8 billion in insured losses and a whopping $8.6 billion when adding the wider economic costs.

The most effective way to protect communities and ease cost pressures is to build the flood levees, dams and other large-scale infrastructure that keep homes and businesses out of harm's way," Hall said.

NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.